Understanding the differences and similarities between bookkeeping and accounting can help you figure out if your enterprise will require bookkeeping or accounting or even both.
Both accounting and bookkeeping are important business functions, but there is a sharp distinction between them, although they do have similarities. Do you know the difference? If you hail from a non-commerce background, it may not be easy to differentiate between bookkeeping and accounting. It is important to understand the difference and similarities as you can understand what you will be paying for when outsourcing these services. While your business may require both the services, the scope of bookkeeping and accounting is similar and different to a certain extent.
Keep in mind that bookkeeping is the stepping-stone of accounting. To keep it simple, remember that accounting is more in-depth and analytical when compared to bookkeeping. Bookkeeping is only a part of accounting and is used to create a base for accounting.
