Bookkeeping
and accounting are both pertinent tool in communicating the financial activity,
performance and state of a business entity.
The vital role of bookkeeping
and accounting in each business has increased the insist for bookkeeping and
accounting job or services international Because of the high demand, it made
bookkeeping and accounting as two of the most gainful and rewarding profession
in the world.
If you want to enter this profitable
profession and opportunity, it is a good option to learn and appreciate the
concept, principles and events of both bookkeeping and accounting.
In this article, you will pick
up precious learning on the distinct definition of bookkeeping and accounting,
and the difference between them. You will comprehend the function and progression
of both bookkeeping and accounting, what separates bookkeeping from accounting,
and when bookkeeping or accounting measures is used.
It is very ordinary
for non-accountants to think that bookkeeping and accounting are of the same
thing. Though they both engross the process of recording the financial
transactions of a business, bookkeeping and accounting are two different
topics.
Bookkeeping is an important part of the accounting in sequence
system because it serves as the base of accounting. Bookkeeping is a division
of accounting which is dependable in recording the financial transactions of
the business. It is the preparatory point of the whole accounting
process. The person accountable on the bookkeeping process is often
referred to as bookkeeper or
accounting clerk. They are the one who ensure the
recording of business transactions in the book of accounts, such as journals
and ledgers, in chronological manner.
Bookkeepers are accountable
in conservation the wholeness and accuracy of the book of accounts. They help
accountants in prepare reports, like financial statements or tax returns, by as
long as summary and supporting documents of the recorded business
transactions. Bookkeeping is only partial to the recording process,
although in cases of small businesses, bookkeepers may also do the preparation
of reports. As such, bookkeeping can be perform by non-accountants who gained appropriate
trainings and experience in bookkeeping.
Accounting, on the other give represent the complete accounting process, from footage until interpreting business financial information. Accounting is one of the most diversify professions because professional accountants have diverse options in which area of accounting they want to focus their career – such as financial accounting, managerial accounting, tax accounting, auditing, etc.
