The Difference between Accounting and Bookkeeping

The Difference between Accounting and Bookkeeping

Posted by on Feb 22, 2016 in Financial Information, Financial Jobs

The Difference between Accounting and Bookkeeping

When we hear about accounting and bookkeeping, it sometimes confuses us because we are not fully aware about their differences. There are some who knows that they are the same and just doing the same job. But then for your awareness there are differences between bookkeeping and accounting. They have their own roles and responsibilities. The accountant and bookkeeper have the same goal but then they have different job in doing financial cycle.

Bookkeeping

8e929c_5f1ea72459d0420c8c0a8d57567f59ddThe bookkeeping process is about recording the daily transactions. This is the key component of building a stronger business foundation. The bookkeeping process is composed of: recording daily financial transactions, posting of the debits and the credits, providing and producing invoices, balancing and maintaining subsidiaries, the general ledger, and important historical accounts and Payroll completion

Daily a business needs to maintain a general ledger that contains their daily transactions. They need to post in the ledger all the sales and the receipts in a day. The ledger where the transactions can be posted by the use of software, spreadsheet or a sheet of lined paper. Even other supporting documents other items should be posted in the ledger. For accounting and bookkeeping jobs visit: goldhawkassoc.co.uk.

Accounting

The accounting process is the next level process where they are getting information from previously compiled records and then produce financial statement out of all those records. The accounting process is more complex than bookkeeping. The accounting process consists of: Preparing the adjusting entries or recording those expenses that occurred but was not recorded yet by the bookkeepers analyzing the costs of the operations, preparing the company’s financial statements, completion of the income tax returns, assisting or explaining to the business owner the impact that will happen based on their financial decisions.

After having the recorded information, the accountants under accounting process will be reporting the financial statement that they have done and will be discussing to the business owners about the profit and also possible adjustments needed. Accounting process will help the business with their strategic planning, tax filing and to financial planning or forecasting.

Learn about accounting job and different areas of accounting

A bookkeeper in the bookkeeping process should have experience of at least 2 years or they should have associate degree. So they can work with accuracy and knowledge with the financial topics. While the accountant in the accounting process should finished a degree and got their certification in being a certified public accountant. This is for them to be able to do more complex job than bookkeepers. The website to visit for accounting jobs is: mhumeandson.co.uk.

bookkeeping

Both of the bookkeeper and the accountant are aiming one goal and that is to maintain the financial status of the company. They are working together to make sure that the records are in good hands and so they can produce an honest report of how is the company is doing. Both are playing important role in the finance of the business world. For better understanding about accounting or bookkeeping you can visit the website: mhumeandson.co.uk or you can contact them.