Accounting and bookkeeping are similar terms that are often interchanged but have different meanings. Bookkeeping is essentially the recording of daily financial transactions, which is part of the entire process of accounting in most organisations and industry View the website here. It usually involves preparing daily source documents for financial transactions, financial operations, and others relevant events of an enterprise. Most accounting firms are expected to have accounting and bookkeeping staffs who are responsible for maintaining the consistency and accuracy of financial records of an organisation or industry.
Which the Best an Accounting and Bookkeeping?
With the advent of accounting and bookkeeping software nowadays, recording financial transactions can be easily done by anyone who is familiar with the use of computers. The main aim of accounting and bookkeeping is to record all the financial transactions of an enterprise for future reference. This includes the movement of cash, inventories, revenue, expenses, liabilities, and payments among others among other financial transactions. All these transactions are recorded in the books of accounts so that a company can know its position in the market, analyse its past performance, prepare for future trends, and set up plans for future activities.
Over the years, there have been a lot of differences between the way accounting and bookkeeping are treated. In fact, many firms, business owners, and entrepreneurs treat them as two separate concepts even though both are actually used together for the purpose of making financial statements. The main differences include the use of information technology for accounting and bookkeeping, as well as the use of manual data entry, processing, reporting, management reporting, etc. In addition, the use of software for accounting and bookkeeping has brought about significant changes for the better, especially with respect to accuracy and timeliness.Continue Reading