Difference between Bookkeeping and Accounting


Difference between Bookkeeping and Accounting

                  Most of the people are confused that bookkeeping and Accounting are the alternative terms. These are related terms but not alternative at all. The “Book” means the “books of Accounts” and “keeping” means maintaining them in proper form and order. Hence the book-keeping is mainly concerned with the recording of business data in proper books. book-keeping is defined as under:

1. “Book-keeping is an art of recording in books of accounts, the transaction in money or money’s term.

The following Differences between Accounting vs Booking Keeping are a help to understand it.

Difference between bookkeeping and accounting
accounting vs bookkeeping

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Points of difference

Book keeping


the scope of workBook keeping is the first phase in accounting, it involves of recording of the business transaction in prescribed manner.Accounting is the next phase. It includes classification of the recorded data.summarizing of the data: preparation of statement and ascertains the result.
Job DescriptionThe job of book keeper is of clerical nature.The job of an accountant is of technical nature.
Knowledge and SkillThe Book keeper requires no professional knowledge.Professional knowledge and skill are required for the accountants.
DecisionThe record maintained by the book keeper serve as a base for the accounting processThe accounting records is used to make the decision regarding the business activities.