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What is the difference between accounting and bookkeeping?

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Question added by Mohamed Seifeldin , Finance Manager , Mashareq & Maghareb For Construction, Yazeed Al Rajhi & Brothers Holding
Date Posted: 2016/06/27

Accounting is a social science through which we use financial data to snapshot the financial position of an entity ( B/S ) & describe what happen during a certain period of time ( P/L ), in addition to the traditional use we also have many branches of accounting (Financial, management, cost, tax.....etc)

While Bookkeeping is just recording entries.

So, Bookkeeping is a very tiny step in the world of accounting.

dheeraj natarajan
by dheeraj natarajan , Manager operation and Marketing , cochin furniture

Where the bookkeeping ends  from their  the accounting starts 

Mohsin Rehman
by Mohsin Rehman , Accountant , Mohi-ud-Din Islamic University

Bookkeeping and accounting are both essential business functions required for all businesses. Bookkeeping is responsible for the recording of financial transactions. Accounting is responsible for summarizing financial data.

Tomasz L
by Tomasz L , Reporting Specialist , Outworking

I can agree with Manaf. The basic difference is that Accounting is wider term and includes the bookkeeping.

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

Bookkeeping is the process of recording the business transactions and the relations between the transactions. The process of bookkeeping is mainly mechanical and does not require any analysis. Instead of the analyzing the bookkeeping relies only on the recording of the information. In the past times the records were kept in a book and this is why this financial tool is called bookkeeping. In the modern days the books got substituted with modern bookkeeping software which run on personal  computer. These kind of software is very sophisticated and it can tremendously help the job of the bookkeeper.  Basically the process of bookkeeping consists the recording of the incoming transactions ( received payments in form of money or cheques from customers, etc. ) and the recording of the outgoing transactions ( paying for specific bills in the correct time, etc. ).Accounting is also the systematic recording of business transactions but it includes additional reports and further financial analysis of the transactions. This basically means that bookkeeping is the part of the accounting process. Accounting beside the recording of the financial transactions also does the preparation of statements, liabilities of the assets and the various results of the whole business. Basically, accounting is using the bookkeeping information, interprets the data and compiles it into reports and presents it in a form of reports to the management.  

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