Bookkeeping vs Accounting: Key Differences

Bookkeeping involves the systematic recording of daily financial transactions, ensuring all data is accurate and organized. It focuses on maintaining detailed records of income, expenses, and other financial activities. Accounting, however, encompasses a broader scope, including analyzing, interpreting, and summarizing the financial data recorded by bookkeeping. Accountants use this data to prepare financial statements, perform audits, ensure compliance with regulations, and provide strategic financial advice. In essence, bookkeeping is about data entry, while accounting provides financial insights and guidance.