Important Differences between Accounting and Book keeping

Recently updated on August 20th, 2023 at 11:38 am

Bookkeeping

Accounting

Book-keeping consists of recording financial transactions in a logical fashion Accounting concerns itself with summarizing of such recorded financial transactions
It is the basis of the process of accounting Accounting is the basis for the Business Language
Financial statements are not a part of the bookkeeping  Preparing financial statements is the ultimate aim of accounting
Managers do not take decisions on the basis of bookkeeping records Accounting records are used to assist managers in making decisions
Bookkeeping does not have any branches Accounting has branches such as Cost Accounting, Management Accounting, etc
 It is done by bookkeepers, who do not require any special skill or knowledge Accountants, on the other hand, require special accounting knowledge and skills

 

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