Most small businesses think that 'bookkeeping' and 'accounting' are the same thing. Although ‘bookkeeping’ and ‘accounting’ are closely linked and are both related to business finances, they are two completely different concepts.

What is ‘Accounting’?

Accounting is an information system – including the process of recording, classifying, summarizing, reporting, analyzing and interpreting the financial condition and operating performance of a business – to communicate it to stakeholders. officials (company leaders, other departments) to make business decisions. From there, we can imagine the job of a real accountant, not just worrying about buying invoices, handling taxes or thinking of ways to avoid having to pay insurance for employees. A true accountant must know how to prepare reports analyzing the business's operations, analyzing the revenue and costs of each type of goods of the business, and the financial situation of the business to help business owners. Have an accurate view of business operations to make the right decisions.

What is ‘Bookkeeping’?

Think of 'bookkeeping' as keeping records. When a person comes to your store to make a purchase, you record the transaction in a book, which is called 'bookkeeping'. It forms part of the accounting information system.

Imagine a piece of cake divided into 6 parts. Each slice is named respectively record, classify, summarize, report, analyze and explain. The entire piece of the pie is called the accounting information system that represents accounting (Accounting). Bookkeeping is part of those 6 pieces of cake.

Source: Auditboy.com