Accounting and bookkeeping are essential and important tools for any business entity, irrespective of the size of the business. Both are equally essential components of the finances documenting processes of a business. As processes, bookkeeping is in fact, a part of the larger process of accounting, which is why if you were to look up the definitions of both, they might end up sounding similar. Read on to find out the differences between accounting and bookkeeping.
Accountants are more qualified than bookkeepers and have higher authority than the bookkeepers. Bookkeepers mainly follow the orders given by the accountants, with respect to the financial documentation to be done.
Bookkeepers look after a business’s daily financial transactions while accountants look after a business’s finances on a monthly, quarterly, bi-annually, or annual basis.
Bookkeepers are not technically qualified in the accounting processes. They gain knowledge in these areas through on-the-job processes. On the other hand, accountants are professionally qualified with respect to degrees acquired in the relevant areas such as CA, Certified Public Account (CPA), etc.
Bookkeepers essentially ensure a balance in the book of accounts so that the debit and credit amounts tally at the end of each day. The accountant creates certain guidelines around which the bookkeeper works.
After reading the above mentioned points about both accounting and bookkeeping, it should have become clear to you, the differences between accounting and bookkeeping.
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