Bookkeeping is the process of recording the business transactions and the relations between the transactions. The terms bookkeeping and accounting are often used interchangeably but they re different.

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The process of bookkeeping is mainly mechanical and does not require any analysis.

Difference between bookkeeping and accounting. Bookkeeping is a part of accounting whereas accounting itself is a wider concept. Bookkeeping refers to the process of accumulating organizing storing and accessing the financial information base of an entity which is needed for two basic purposes. Bookkeeping is the initial stage in which we keep the record of income and expenditure whereas in accounting department accountants analyze the company s financial activity and prepare reports.

Difference between bookkeeping and accounting. Read more to learn how they differ and why it s important. Instead of the analyzing the bookkeeping relies only on the recording of the information.

Both bookkeeping and accounting are used interchangeably in the financial world however there is a notable difference between bookkeeping and accounting. Accounting is an orderly recording and reporting of the financial affairs of an organization for a particular period. Bookkeeping is an indispensable subset of accounting.

Bookkeeping is an activity of recording the financial transactions of the company in a systematic manner. Bookkeeping and accounting are two different departments dealing with the accounts of company. Facilitating the day to day operations of the entity.