Accounting Vs Bookkeeping

eBetterBooks Accounting vs VS Bookkeeping What's the difference? What Is Accounting? Accounting refers to recording the financial statements of a business and using those statements to generate reports for the business as well as the tax departments. A business can leverage from the services of accounting by doing tasks such as financial forecasting, audits, strategic planning, tax returns, and performance optimization. The basic qualification for accounting people is to have an undergraduate degree, specifically in the field of finance. If an accountant desires to work in a large- sized business, then the basic qualification they will be asked to be eligible for is to qualify as a CPA (Certified Public Accountant). What Is Bookkeeping? Bookkeeping forms the first crucial step in the accounting process since bookkeepers lay the foundation for accountants by keeping a record of all the transactions. Bookkeepers keep a check on finances and track your transactions at a glance. It means they are aware of how much money is going out and how much is coming in or adding value for that matter. Bookkeeping can, therefore, be defined as a process to record daily transactions logically and persistently. It can be a significant step to run a financially successful business. 00.00 SeP0.00 s54.99 s290.00 The role of a bookkeeper majorly composed of methods like recording transactions, posting invoices, keeping a check on debits or credits, and maintaining invoices. Nature Process Bookkeeping is clerical and is mostly undertaken by the junior employees. Bookkeeping involves identifying and recording financial transactions. Accounting deals with enabling Accounting includes identifying and stakeholders to get a picture of the financial recording business transactions. position of the company. Objectives Managerial Role Bookkeepers identify, quantify, record, and An accountant can make crucial decisions. further classify the ongoing transactions. Accountants analyze, interpret the A bookkeeper is not decisive enough recorded data and communicate the same in the best interest of the organization to help stabilize the financial health of the company. Skills Tools Bookkeeper use ledgers and journals Accountants need specialized training. Accountant use balance sheets, profit, and Bookkeepers do not require any special loss statements, and cash flow statements skill set. Conclusion: DE E Both bookkeeping and accounting are very These operations have been transformed old practices for businesses to keep track of into the digital processes with the help of tools and platforms such as Quickbooks their day to day earns and spends; managing the financial assets of the which reduces human error, increases business. efficiency, and provides accuracy with large sums of money. Bookkeeping and accounting plays a vital For bookkeeping and accounting service role in managing every business; BIG or small. eBetterBooks comprises of requirements, feel free to contact us or talk to one of our representatives. We would love to help you. professional bookkeepers and certified accountants who are ready to handle whatever you've got. For more information, check out these blogs related to bookkeeping and accounting: Bookkeeper Vs Accountant: Top 10 Differences Accounting Vs Bookkeeping: A Quick Guide For Business Owners Accounting vs. Вookkeeping y @ebetterbooks f @ebetterbooks eBetterBooks www.ebetterbooks.com