DIFFERENCE BETWEEN BOOK-KEEPING AND ACCOUNTANCY

POINTSBOOK-KEEPINGACCOUNTANCY
1. MeaningIt is concerned with recording and classifying the business transaction.It is related with recording, classifying, summarising, analyZing and interpreting the financial data.
2. StageBook-keeping is the primary stage in accounting. It is the base for accounting.Apart from the primary stage, it includes secondary stage of analysis and interpretation.
3.ObectivesThe objective of Book keeping is to keep the records of all financial transactions in proper and systematic manner.The objective of accounting is to prepare the financial statement and further communicate the information to the relevant authorities.
4. ResponsibilityJunior staff is responsible for keeping records.Senior staff is responsible for keeping accounts.
5. OutcomesBook-keeping basically results in Journal and Ledger.The results of Accountancy is Profit and Loss A/c and Balance sheet.
6. PeriodBook-keeping give day to day details.Accountancy gives details of entire year.
7.AnalysisThe process of Book-keeping does not require any analysis.Accountant uses Book-keeping information to analyse and interpret the data and then compiles it into reports.
8. Decision MakingManagement cannot take decision based on the data provided by Book-keeping.Depending on the data provided by the accountant, the management can take critical business decision.
9. Skill requiredAnalytical skill is not required for Book-keeping.It requires analytical skill.

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