The Book-keeper does not supervise the work of an Accountant.Īn Accountant is responsible for supervising and checking all the work done by Book-keeper. The methods of interpretation and reporting of transactions in accounting differ from firm to firm.īookkeeping is restricted to a low level of work, which is clerical in nature.Īccounting is concerned with low, medium, and even top-level management. There is no need of having any special skills to record the transactions in Bookkeeping.Īccounting requires special skills because it is analytical in nature.īookkeeping does not show the financial position of the business as it is only concerned with recording.Īccounting shows the net results of the business, including profit earned and the assets and liabilities of the business.Īccounting concepts and conventions are followed in Bookkeeping. In Accounting, analysis is done to obtain important insights into the business. The information is only recorded in the bookkeeping and not analyzed. With the help of accounting, management can take decisions as it is responsible for communicating the information. Management cannot take decisions on the basis of bookkeeping because it is only concerned with the management of books. The objective of Accounting is to record, analyze, and interpret all the transactions.Īccounting has a wider scope as compared to Bookkeeping. The objective of Bookkeeping is to prepare original books of accounts.
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