Bookkeeping vs Accounting – What is the Difference?
Some people think that bookkeeping is the same as accounting, but the reality is that it is only part of accounting.
Bookkeeping consists of the recording of operations in the accounting books. It is the process of taking the values recorded in the accounting supports (vouchers) that support the realization of the economic facts and consign them in the different accounting books, the newspaper, the major and the auxiliary books.
Accounting is a much broader concept which is based on bookkeeping, analysis and interpretation of information recorded in accounting books and financial statements, information that has been possible to generate thanks to the art of bookkeeping.
Accounting is responsible for:
- Analyse and evaluate the economic results
- Group and compare results
- Plan the procedures to follow
- Control the fulfilment of the program
In as much, the bookkeeping deals with:
- Collect, register and classify company operations
- Report in writing the accounting facts
- Execute the tasks according to the pre-established procedures
- This under the control and supervision of the accountant