![]() ![]() The bookkeeping process does not provide financial statements.įinancial statements like Income statements, Balance-sheet, Cash flows are made from the Accounting process.īookkeeping requires no additional skill set an undergraduate can do the process.Īccounting knowledge is required due to the complexity of the process. Making business decisions from the scattered data available from Bookkeeping is impossible.Īs the primary function involves classifying and grouping data, it is very easy for the management to know the health of the Business and to take unbiased strategies for improvement. Segregating and Posting Financial data under proper heads and interpreting business from the ongoing financial transactions. The primary objectives of Bookkeeping involve storing financial transactions in a chronological manner. Related to summarizing, interpreting, analyzing, and communicating through Ledger and journal. Related to identifying, measuring, and recording financial transactions in a business. Accountants generally check Bookkeeping before they prepare Financials statements.Ĭomparison Table of Bookkeeping vs Accountingīelow is the topmost comparison between Bookkeeping vs Accounting.Thus, the accounting finalization needs to be done by an accountant and should be verified through the Auditing process. ![]()
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