Bookkeeping and accounting use many terms interchangeably but the first step to the letter bookkeeping is the steeping done of the accounting. Bookkeeping and accounting is the critical aspects of the business operations of any industries. Bookkeepers and accountants helps business owners and executive tack of the any expenses. While Bookkeeping and accountancy are very similar in their functions there are significance between their two roles.This article are five majors factors between bookkeeping and accounting to each the positions plays on the important part of the business growth and sustainability.
- Bookkeeping-Bookkeeping is a vital part for the day business operations and in the foundations for the preparing statements,tax returns and other main important reports in short of Bookkeeping is the process of the recording financial transactions.A general is a document that bookkeepers use to record the amounts from sale and expense receipts. This process can be done with papers, a spreadsheet, or specialized software.
- Accounting-Accounting on the other hand,its accounting is a high level of the process than takes of the financial information and they produces financial bases on the data.In other words accounting takes the information for a business bookkeeping.
- Accounting is the identifying, recording, classifying and they summarizing communications financial information.
- Financial Accounting
- Management Accounting
- Cost Accounting
- Social Responsibility Accounting
- Human Resources Accounting
Objectives
- The First Objective of Bookkeeper to accurately record all financial transactions in the logical of the systematic way.Generally BookKeeping systems which we will discuss in full details on.
- The Second Objective Bookkeeping ascertain the final accounts of the company the profit and loss Account and Balance Sheet.
- The Third Objective Bookkeeping helps to identify the transactions of financial nature and summarize them systematically in a chronological order.
- The Fourth Objective To Provide theFinancial Information Bookkeeping provides financial information of the business to the management and shareholders.
- The Fifth Objective To Know The Financial Position Actual the financial position the grow business can be known with the help of different financial statements prepared on the basis of bookkeeping.
Types Of BookKeeping
There are two basic types of the BookKeeping
- SIngle Entry-Single entry systems involve only one record, They are mainly transactions related to cash receipts.However, since their accounts cannot be connected to potential they fraud high.
- Double Entry is connected to two records for each transaction, a record of the accounts being credited one being debited.While much more complex than the single entry process to the Generally Accepted Accounting Principles.
We have seen there are major differences between Bookkeeping and Accounting both of these roles to sustain business access.It is important to both of the positions highly trained and experienced they fully benefit from such services. If you are a business owner in need of bookkeeping and accounting services and they reach out a free consultation.We understand your current circumstances that will allow you focus while we handle bookkeeping and accounting needs.
Conclusion-
BookKeeping works as a platform to Accounting as bookkeeping.This Introduction to bookkeeping and accounting has covered the skills and knowledge required to understand double-entry bookkeeping, the trial balance and the two principal financial statements: the balance sheet and the profit and loss account. Perhaps the most important aspect of accounting that you learnt is the knowledge that for all organisations and individuals their financial position or worth can be expressed in the accounting equation.
