But the complexity of bookkeeping depends on the number of transactions recorded daily, weekly and monthly along with the size of the business. Through bookkeeping the status of the company can be identified if it is generating profits or losses. Let’s understand the functional difference between bookkeeping and accounting.īookkeeping is the process of recording, storing, retrieving financial transactions of a small, medium or large company, non-profit organization, an individual person etc. At the same time, bookkeeping and accounting are inherently different and have their own set of characteristics and advantages. For laymen bookkeeping and accounting can appear to be the same because both deal with the financial data with basic accounting knowledge, classify and generate reports using the financial transactions. In the simplest of simple terms, we can define bookkeeping as the recording of financial transactions whereas accounting gives you a clearer picture of interpreting, analysing, classifying, reporting and summarizing of financial data.
Does your firm need accounting and bookkeeping services?Īccounting and Bookkeeping are two major financial functions that are extremely important for any business organization.