Difference Between Bookkeeping And Accounting

Bookkeeping and accounting are both important parts of managing your finances. At first glance, the two can seem quite similar, but there are a few main differences.

Bookkeeping focuses on recording and organising financial data. Accounting is the interpretation and presentation of that data to business owners and investors.

Bookkeeping typically consists of:

• payroll
• invoicing
• receipts and bills
• recording business transactions

Accounting typically consists of:

• financial statements and reports
• budgets
• tax returns
• analysing business performance

The tasks that bookkeepers and accountants do vary between businesses. Bookkeepers working for smaller businesses might do some basic accounting duties. There’s often overlap, and the duties may change a lot from one business to another.