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What's The Distinction Between Bookkeeping And Accounting?

What's The Distinction Between Bookkeeping And Accounting?

What is the difference between bookkeeping, accounting, and accountancy? When someone says they are an accountant, are they really a bookkeeper? Does it really matter?


Bookkeeping is the process of systematically recording the monetary transactions of a business, in order to show how the transactions relate to each other. Bookkeeping is basically a mechanical process and doesn't contain any evaluation of the financial transactions, but rather the recording of them.

Traditionally, the records had been kept in a book, hence the name bookkeeping. Today, bookkeeping is normally carried out utilizing a bookkeeping software package, but the names of the books (daybook, moneybook, journal, and ledger) are still used.

A bookkeeper's perform is primarily certainly one of recording transactions within the journal and posting to the ledger, and is sometimes referred to as an accounts clerk.

There are types of bookkeeping: single entry and double-entry. In single entry bookkeeping, the record of each transaction is carried to both the debit or credit column of a single account. In double-entry bookkeeping, entries of each transaction are carried to the ledger: one to the debit side, and one to the credit side, cra audit of the corresponding account. This is so the 2 entries can be used to check each other.


Accounting is the systematic recording, reporting, and evaluation of financial transactions of a business. As bookkeeping entails making a monetary record of business transactions, it is true to say that the role of bookkeeping is encompassed within the scope of accounting, and the bookkeeping system used by a business would type part of the accounting system.

Accounting additionally consists of the preparation of statements regarding property, liabilities and the operating outcomes of a business.

Accountancy is the occupation associated to accounting, and an accountant is the person who does, or a minimum of is answerable for, the work. Accountants often specialise in a particular area of accounting reminiscent of taxes, auditing, or management.

In a small company, all of the bookkeeping and accounting duties could be performed by a single person. In this situation, that person would normally be referred to as an accountant.