It covers procedural elements of accounting work and includes record keeping function. Accounting is based on a methodical and efficient book-keeping system. Further, book-keeping is implied to reveal the effect of all the transactions made throughout the accounting period on the monetary position of the company.
Book-Keeping and Accounting
Book-keeping and accounting are often used interchangeably however they are various from each other. It consists of the design of accounting systems which the book-keepers utilize, preparation of monetary declarations, audits, expense research studies, income-tax work and analysis and analysis of accounting info for internal and external end-users as a help to making service decisions. It can be said that accounting starts where book-keeping ends.
Book-keeping is the recording stage while accounting is worried with the summarising stage of an accounting system. Book-keeping supplies required information for accounting and accounting begins where book-keeping ends
The following are the points of distinction between book-keeping and accounting:
|( i) It is worried with the recording of deals.|
|( iv) Book-keeping is done in accordance with basic accounting ideas and conventions.||( v) Financial declarations are prepared in accounting procedure from the book-keeping records.