Bookkeeping and Accounting
Accounting
Bookkeeping
Bookkeeping
Definition:
• Accounting involves analyzing and interpreting financial data to provide a comprehensive view of a company’s financial health.
Responsibilities:
• Financial Analysis: Accountants rely on bookkeeping data but also look for larger trends and patterns.
• Strategic Decisions: They advise leadership on financial decisions, cost-saving measures, and profit generation.
• Tax Planning: Accountants handle tax compliance, planning, and optimization.
Specialization:
• Accountants are more specialized professionals.
Software or Professionals:
• Companies can work with accounting software or hire licensed accountants.
Collaboration:
• Bookkeepers and accountants often work side by side, complementing each other’s roles
Bookkeeping
Bookkeeping
Bookkeeping
Definition:
• Bookkeeping serves as a preliminary function by recording and organizing daily financial information.
Responsibilities:
• Transaction Tracking: Bookkeepers meticulously record all financial transactions, including sales, purchases, expenses, and payments.
• Data Entry: They maintain ledgers, journals, and other financial records.
• Reconciliation: Bookkeepers ensure that financial data aligns with bank statements and other sources.
• Financial Reports: They generate basic financial reports like income statements and balance sheets.