Accounting is the process used to record financial transactions, summarize, analyze, and prepare a complete report. Bookkeeping is the recording part of the process, in which all of the financial transactions of the business (consisting of income and expenses) are entered into a database. An accountant is responsible for analyzing and interpreting the financial data of a company, and prepare the complete report.
An account usually is certified or has a relevant degree and has more skills than a bookkeeper. A bookkeeper works under the accountant.
Both bookkeeping and accounting are very important for a company. The bookkeeping is used for recording financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the accounting data.
Bookkeeping and accounting may appear to be the same profession to an untrained eye. This is because both accounting and bookkeeping deal with financial data, require basic accounting knowledge, and classify and generate reports using the financial transactions. At the same time, both these processes are inherently different and have their own sets of advantages. Read this article to understand the major differences between bookkeeping and accounting.
Duties of a Bookkeeper:
The duties of a bookkeeper vary, depending on the company. Here is a breakdown of the responsibilities typically associated with a bookkeeping role:
The duties of a bookkeeper may be different as per the company requirement. We are discussing here the common responsibilities of a bookkeeper.
- Handle and manage the accounting software to process the single or double entry system of accounting.
- Handle, manage, and monitor the bookkeeping policies and procedures.
- Develop credit and debit accounts, including the assigning of expenses categories
- Enter expenses and income into the software, including non-digital methods of payment such as cash and checks.
Duties of an Accountant?
- Data Management
- Financial Analysis and Consultation
- Financial Reports
- Regulatory compliance