What is The Difference Between Bookkeeping and Accounting?

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What is The Difference Between Bookkeeping and
Accounting?
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• Bookkeeping involves recording each transaction
  for a business while accounting is more about
  looking at all those transactions to find trends
  that can be used to help a company. More
  specifically, bookkeeping is done with paper
  records, while accounting requires software
  programs.

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• Bookkeepers record each transaction in a
  companys financial. Accounting is more
  subjective, giving you insights into your
  businesss financial health based on bookkeeping
  information.

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• Accounting and bookkeeping are two related fields
  with some differences in functionalities.
  Understanding these differences is important
  because the roles of accountants and bookkeepers
  differ based on their respective skill sets,
  expertise, knowledge base or background
  experiences (e.g., accounting vs finance). In
  this guide, we will explain the functional
  differences between accounting and bookkeeping.
  We will also discuss the distinct roles of a
  bookkeeper versus an accountant.

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• The function of bookkeeping 
• The role of a bookkeeper is to record and detail
  the business transactions that affect any aspect
  of your business (e.g., revenue, expenses,
  payroll, inventory). You can think of a
  bookkeeper as someone who records the basic
  transactions happening in a business not much
  beyond recording them.

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• Bookkeepers typically handle routine day-to-day
  ledger maintenance. The general ledger is a basic
  document where a bookkeeper records the amounts
  from sale and expense receipts. This is referred
  to as posting. The general ledger is a
  summarised list of all amounts.

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• The function of accounting 
• Accounting is a high-level process that uses
  financial data compiled by a bookkeeper or
  business owner to produce financial models,
  reports, and analyses. The main goal of
  accounting is to provide useful information to
  managers, investors, tax authorities, customers,
  suppliers, employees etc.

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• Accountants can also offer advice on business
  decisions based on analyses derived from
  financial data in addition to providing
  regulatory compliance for businesses (e.g.,
  accounts are retained for a certain number of
  years). A financial statement serves as the basis
  for making business decisions and helps monitor
  performance.

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• Accountants gather, organise, and summarise
  transactions, then draw conclusions based on that
  information. Accountants analyse past
  performances to make better business decisions in
  the future. They compare their findings with past
  performance and Analysing costs of operations and
  Completing income tax returns.

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• The roles bookkeeper vs accountant 
• Bookkeepers record the amounts from sales and
  expense receipts. They keep track of financial
  transactions in journals, ledgers, and computer
  programs. Accountants combine information from
  several sources to draw conclusions about a
  company's performance.

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• They collect relevant data that is then analysed
  before drawing conclusions or giving advice.
  Typically, bookkeepers are not required to have
  any formal education. To be successful in their
  work, bookkeepers need to be sticklers for
  accuracy, and knowledgeable about key financial
  topics. Accountants, on the other hand, need a
  bachelors degree in accounting or finance from
  an accredited university. Additionally, they must
  get a professional license from their state to
  operate as accountants.

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• Although your business may have both a bookkeeper
  and an accountant on staff, their job duties are
  quite different.
• Here are the major pointers.

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• Bookkeeper
• Recording and categorizing financial transactions
• Posting debits and credits
• Producing and sending invoices
• Maintaining and balancing subsidiaries, general
  ledgers, and historical accounts
• Completing payroll
• Record keeping

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• Accountant
• Preparing adjusting entries
• Preparing financial statements
• Completing income tax returns
• Financial analysis and strategy
• Tax strategy and tax planning
• Financial forecasting

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• iKeep Bookkeeping Hall Chadwick
• Organised financial records and perfectly
  balanced finances produced by the bookkeeper,
  coupled with smart financial strategy and
  accurate tax filing by the accountant, contribute
  directly to the long-term success of every
  business. iKeep bookkeeping with its partner firm
  Hall Chadwick, offers services ranging from
  bookkeeping, accounting, compliance solutions, to
  financial planning and strategy. Find out more at
  www.iKeep.com.au