Many individuals mistakenly consider bookkeeping and accounting to be same. But there are some basic differences between them such difference between bookkeeping and accounting are given below.
Difference between bookkeeping and accounting
1. Definition: Bookkeeping is the process of recording economic events.
But accounting is an information system that identifies records and communicates the economic events.
2. Part: Bookkeeping is just a part of the accounting process.
Whereas, Accounting is the entire part of the accounting process.
3. Title: Person concerned with bookkeeping is called bookkeeper.
On the other hand, a person concerned with final stage to accounting is called the accountant.
4. Stage: Bookkeeping is the primary stage of the whole accounting process.
Conversely, Accounting is the second or final stage of the whole accounting process.
5. Nature: Bookkeeping is a clerical natured.
But Accounting is an analytical natured.
6. Standards: Bookkeeping follows only own organizational standards.
Reversely, Accounting follows internationally recognized standards.
7. Development: Bookkeeping has no remarkable development.
But Accounting is always developed by experts.
8. Function: In the bookkeeping, recording is its one function.
Whereas, Identifying, recording and communicating are accounting major functions.
9. Users: Only the internal users (owners, managers, and employees) use bookkeeping.
On the other hand, Accounting has both internal and external users.
In the end, accounting process includes the functions of bookkeeping.
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