What are the differences between bookkeeping and accounting?

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    accountinglads
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    bookkeeping and accounting are similar yet they are different processes. Bookkeeping is simply keeping the records on a daily basis of financial transactions such as sales, expenditure as well as payroll. It makes financial information precise and current. Accounting however is one step ahead and examines, analyzes, interprets and summarizes this data to produce financial reports and to further add information to strategic deliberations. Whereas the bookkeepers keep the ledgers and reconcile bank statements, the accountants would involve this information in budgeting, auditing and taxes planning. The combined use of the two functions facilitates business development, transparency and compliance related to finances.

    #19872 Reply
    Brian Green
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