Difference Between Bookkeeping and Accounting

Many individuals mistakenly consider bookkeeping and accounting to be the same. But there are some basic differences between them such difference between bookkeeping and accounting are given below.

Bookkeeping: According to Oxford bookkeeping is the activity or occupation of keeping records of the financial affairs of a business.

Accounting: According to the American Accounting Association – “Accounting is the process of identifying, measuring, communicating economic information to permit informed judgments and decisions by users of the information.”

Want to know more about accounting meaning and definition click here.

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 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: The person concerned with bookkeeping is called a bookkeeper.

On the other hand, a person concerned with the final stage of 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 clerical natured.

But Accounting is an analytical natured.

6. Standards: Bookkeeping follows only its 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 bookkeeping, the recording is its one function.

Whereas, Identifying, recording, and communicating are accounting major functions.

9. Users: Only internal users (owners, managers, and employees) use bookkeeping.

On the other hand, Accounting has both internal and external users.

Difference between bookkeeping and accounting

In the end, we can say that the accounting process includes the functions of bookkeeping.

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