Fastcollab - What is the difference between accounting & bookkeeping fastcollab blog

08/09/2016

What is the difference between Accounting & Bookkeeping? | FastCollab | Blog

WHAT IS THE DIFFERENCE BETWEEN ACCOUNTING & BOOKKEEPING? September 12, 2016 Mukul Agarwal

Definition of Bookkeeping The procedure of complete & systematic files keeping of the fiscal dealings of an organization by the bookkeeper is called as bookkeeping. It is the action of keeping full documents of every single fiscal transaction of the unit to form a base for the process of accounting. The function of bookkeeping is to reveal the correct depiction of income & expenditure at the end of the accounting period.

The bookkeeper is responsible for recording the day­

Most of the time, organisations run by non­commerce individuals assume that Accounting &to­day business transactions like goods sold or Bookkeeping are one and the same thing. And thus, end up in big troubles when tax filing purchased on credit, incoming & outgoing of cash, times come for the business. This blog extract will make a try to differentiate these twoexpenses incurred, etc. in a systematic manner. The terms. The first step to the accounting is bookkeeping. As far as the scope is concerned,bookkeeper details the transactions in the day books like purchase, purchase return, sales, sales return, accounting is much wider than bookkeeping as the latter is just a part of former. journal, cash book, etc. & posts them in the respective ledger after that trial balance has prepared. There are two techniques of Bookkeeping Single Entry system of Bookkeeping Double Entry system of Bookkeeping

data:text/html;charset=utf­8,%3Cheader%20class%3D%22entry­header%20page­header%22%20style%3D%22box­sizing%3A%20border­box%3B%20display%3A%20block%3B%20padding­bottom%3A%209px%3B%20margin…

1/3

08/09/2016

What is the difference between Accounting & Bookkeeping? | FastCollab | Blog

Definition of Accounting Accounting is just a business language which provides information about the financial status of the organization. It is the absolute procedure which starts from the recording of dealings and ends on reporting of the fiscal statements at the end of the financial year.

The function of accounting is to give the true & fair view of the monetary statements to its users, i.e. investors, creditors, employees, suppliers, government, managers, and the common public in such a manner which is simply comprehensible to them for a scrupulous economic year. The monetary statement arranged with the assist of accounting states regarding the wealth, profit & financial position of the unit. The branches of accounting are Financial Accounting Human Resource Accounting Management Accounting Social Responsibility Accounting Cost Accounting

Role Difference between a Bookkeeper and an Accountant A Bookkeeper keeps exact records of the fiscal transactions of an entity. While role of an Accountant includes measuring, recording, grouping, evaluating, summarizing, and reporting of transactions of the unit which are in fiscal terms.

Bookkeepers need not unveil the correct fiscal position; however Accountants assist their clients in the presentation the true & fair view of the fiscal status & profitability of the organization.

Accountants are responsible to generate and maintain Financial Statements of the company which are to be used for filing taxes at the end of Financial year. However, Bookkeepers maintain subsidiaries, general ledgers, and historical accounts.

Accounting files are taken as the base for taking managerial decision nothing like bookkeeping records, in that decision making is complicated.

Conclusion Bookkeeping works as the platform to Accounting method as bookkeeping is the first stage or beginning of accounting. Thus, Bookkeeping is an indivisible part of Accounting.

Bookkeeping works as a base for the Accounting & so if the bookkeeping of records is done correctly, then it has thought that accounting will also be perfect & vice versa. The task of

data:text/html;charset=utf­8,%3Cheader%20class%3D%22entry­header%20page­header%22%20style%3D%22box­sizing%3A%20border­box%3B%20display%3A%20block%3B%20padding­bottom%3A%209px%3B%20margin…

2/3

08/09/2016

What is the difference between Accounting & Bookkeeping? | FastCollab | Blog

Bookkeeping is the secretarial one. thus, a little knowledge of commerce is adequate for it while the task of accounting is an analytical one so thorough knowledge in this field has required.

FastCollab helps start­ups / SMEs to be their ultimate outsourcing partner when it comes to getting their Business Services done by the experts. Here is a look on Why Accounting & Bookkeeping is important for start­ups.

data:text/html;charset=utf­8,%3Cheader%20class%3D%22entry­header%20page­header%22%20style%3D%22box­sizing%3A%20border­box%3B%20display%3A%20block%3B%20padding­bottom%3A%209px%3B%20margin…

3/3