If you are studying a business-related course, you must encounter these two terms. The bookkeeping and accounting. However, if not and you are just an ordinary citizen who doesn’t have any idea what these two is all about, you may be confused about the difference between the two. Meanwhile, if you are in the business industry or going to have a small business soon, these words should be added to your vocabulary right away.
For you to be familiar in these two terminologies continue reading this article for the difference between them.
Bookkeeping Defined
Bookkeeping refers to the recording of various financial transactions and is a constituent part of the process of bookkeeping in most companies and organization. It entails preparing resource documents for purchases, sales, receipts, payments, advances, disbursements, and audit entries of an organization.
While some tasks in bookkeeping can be done quickly and easily, others require expertise that is not directly related to finance or accounting. This is especially true when professionals need access to information about the purchase of equipment, supplies, or inventory.
If you happen to need a bookkeeper and don’t have a budget to hire one you can depend on the best bookkeeping app available on the market.
Accounting Defined
Accounting is a term that you have probably heard or seen in your life. Accounting is the measurement, preparation and communication of non-financial financial or economic entities such as corporations and businesses. Accounting includes many types of accounts, including tax reporting, management information reporting and balance sheet information.
It may be challenging to grasp the definition of it but regardless of how hard it is, you can’t deny the fact that you need to know it and use it for your business.
It is a complex matter however, there are free accounting software for small business that you can use in your daily business life.
For more information about the difference between accounting and bookkeeping, click this infographic from KIPPIN.
