Similarities and Differences of the Two
Most of the people know that there is accounting to the world of finance and management. But bookkeeping, the term is still foreign to some people, although it has been brought up a lot recently. In managing your business, you can hire the professionals to do either or both of the bookkeeping and accounting processes. So, what is bookkeeping and what is accounting, anyway? What makes them similar yet different from each other? Here are the answers to those questions:
Bookkeeping is part of the accounting process, to simply put it. The term refers to one whole process of accumulating, organizing, storing and accessing the financial information base of an entity. Bottomline, it is the financial information infrastructure of an entity, and some may know it as recordkeeping.
Accounting, on the other hand, is a broader term; it is used to designing the system of bookkeeping, creating controls of the system, analyzing and verifying the recorded information. To make it easy to understand, the accountants’ job is to handle all parts of the accounting process, meanwhile the bookkeepers’ job is to handle only the recording part of the accounting process.
Similarities and Differences
Both bookkeepers and accountants deal with financial data. They all have the basic accounting knowledge needed in their jobs. In some companies, bookkeepers have greater responsibilities than only recording transactions, and accountants may also be involved deeper in the bookkeepers’ work.
If you’re already an accountant, the probability is that you can handle the bookkeepers’ work with a little bit of training. But to work in accounting, you had to have at least a bachelor degree, and not all bookkeepers are qualified for that. Accountants have greater areas of work to be done, so deep knowledge and many practices of accounting are needed to become one. Visit Brawa Accounting