Define bookkeeping vs accounting9/18/2023 ![]() ![]() Merging Bookkeeping and Accounting Functions.Here are some of the upcoming shifts in these fields: In future also, this trend of shifting landscapes will tend to continue in a similar fashion. Both these fields have undergone a remarkable amount of change. The Shifting Landscapes of Bookkeeping and Accountingīookkeeping and accounting have been in practice for a very long time. It requires a high level of skills for analyzing the financial data and using it for decision making. It clearly depicts the financial position of the business. It does not depict the financial position of the business. It helps in the process of analysis of data. ![]() It provides sufficient and accurate data for helping in the decision-making process.īookkeeping does not require any analysis of data. It does not provide sufficient data for decision making. The accounting process involves the preparation of financial statements such as Trading, Profit and Loss A/c and Balance Sheet. Preparing financial statements does not fall under the purview of bookkeeping. It refers to the process of identifying, recording, classifying, summarizing, interpreting and communicating financial transactions. It refers to identifying and recording monetary transactions. Preparing and analysing financial statements.ĭifference between Bookkeeping and Accounting Basis. ![]() Process of AccountingĪlong with the steps of the bookkeeping process, the process of Accounting goes a step further and also includes: It also helps in short and long term decision making. It helps the users of financial information such as investors, creditors, employees, and the government to assess the credibility of the business. Also, accounting determines and presents the financial position of a business to stakeholders. It is a process of recording, measuring, summarizing, analyzing financial transactions and communicating financial information of an entity.
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