Bookkeeping and accounting often work together. People often learn basic and advanced essential skills in these courses. The basic skills involve various numerical skills related to bookkeeping as well as accounting. These courses are often based on step by step introductory and advanced lessons and lectures related to bookkeeping and accounting involved. For instance, at the initial stage, double-entry bookkeeping skills are taught, and the profit and loss accounting related to balance sheet is also taught. Hence, for a specific period, in this systematic process of occupation of bookkeeping, financial information is often summarized, recorded, analyzed and reported for a business. Various online offers basic courses for free, yet, charge for advanced courses.
Differences between Bookkeeping and accounting:
– Concerned with recording of financial transactions.
– It is the beginning stage and acts as a base for accounting.
– Objective of Bookkeeping is to keep records of all financial transactions.
– Financial statements are not prepared as a part of process (journal and ledger books of accounts are prepared).
– Does not help management in decision making.
– Bookkeeping does not reflect the financial position of an organization.
– simple in nature.
– performs fixed or limited set of tasks.
– Does not require any personal skills and qualifications.
– It depends on accounting in order to make the accounting records more meaningful.
– Related to summarizing, interpreting and communicating financial transaction.
– Accounting begins where bookkeeping ends.
– Objective of Accounting is to show the financial situation of the company.
– Financial statements are prepared in the accounting process.
– Accounting helps management in decision making.
– Accounting reflects the financial position of the organization in different perspectives.
– very complex in nature. Because has various standards and formats.
– Performs a variety of challenging tasks. It has to perform various challenging tasks.
– Accounting requires special skills and qualifications. He has to knowledge about accounting.
– It depends on book-keeping in order to get the accounting records and make them meaningful.