Difference between Book Keeping and Accounting with Meaning

It covers procedural elements of accounting work and welcomes record keeping function. Obviously, book-keeping treatments are governed by the end product, the financial statements.

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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:

Book-keeping 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.

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