Differences between Book-Keeping and Accounting :
Book-Keeping and accounting are not identical (i.e., are not one and the same). There are some differences between the two. The main differences between the two are :
1. Book-Keeping denotes the mere recording of business transactions in appropriate account books. On the other hand accounting denotes the recording of business transactions in proper books of accounts as well as the preparation and analysis and interpretation of financial statements. So the scope of accounting is much wider than that of book-keeping.
2. Book-Keeping just maintains information about a business in the books of account. But accounting analyses and interprets the information maintained in the books of account. So one can say that " accounting begins where book-keeping ends".
3. Book-Keeping is concerned with the actual recording of business transactions. Whereas accounting lays down even the principles or rules to be followed in the recording of business transactions. So, we can say that "while accountancy professes (i.e., lays down the principles) book-keeping practises.
4. The work of book-keeping is of routine nature, and so it does not require any special knowledge and skills. But the work of accounting is of complicated nature, and so, it requires special knowledge and skill.
5. The book-keeping work is usually performed by book-keepers or account clerks. Whereas the accounting work is done by qualified accountants.
Book-Keeping and accounting are not identical (i.e., are not one and the same). There are some differences between the two. The main differences between the two are :
1. Book-Keeping denotes the mere recording of business transactions in appropriate account books. On the other hand accounting denotes the recording of business transactions in proper books of accounts as well as the preparation and analysis and interpretation of financial statements. So the scope of accounting is much wider than that of book-keeping.
2. Book-Keeping just maintains information about a business in the books of account. But accounting analyses and interprets the information maintained in the books of account. So one can say that " accounting begins where book-keeping ends".
3. Book-Keeping is concerned with the actual recording of business transactions. Whereas accounting lays down even the principles or rules to be followed in the recording of business transactions. So, we can say that "while accountancy professes (i.e., lays down the principles) book-keeping practises.
4. The work of book-keeping is of routine nature, and so it does not require any special knowledge and skills. But the work of accounting is of complicated nature, and so, it requires special knowledge and skill.
5. The book-keeping work is usually performed by book-keepers or account clerks. Whereas the accounting work is done by qualified accountants.
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