Differences Between Book Keeping and Accounting
Accounting image

Bookkeeping should not be confused with Accounting. The process of Accounting begins where book keeping ends. We can say that a bookkeeper is the accountant just as a nurse is to the Medical Doctor.


Accounting is the process of recording, classifying, selecting, measuring and communicating financial data of an organization to enable users make decision.


BookKeeping is the systematic recording of transactions on a daily basis in the appropriate books. It is an integral part of accounting. Bookkeeping is the process of recording data relating to accounting transactions in the accounting books.

In a more detailed explanation, I shall highlight the difference between bookkeeping and Accounting.

1. Bookkeeping is the basis for accounting while accounting is the basis for business language.

2. The people responsible for book keeping are called BOOKKEEPERS while those for accounting are called ACCOUNTANTS.


3. Bookkeeping doesn't require any special skill while Accounting require skill and knowledge.

4. Bookkeeping is a recording phase while Accounting is a summarizing phase.

5. In Bookkeeping, Financial statements are not prepared for records while in Accounting, financial statements can be prepared for accounting records

6. Bookkeeping cannot help for decision making while accounting will help for decision making

6. Bookkeeping cannot give a complete picture of the financial status while Accounting will give a complete and clear picture of the financial status of a business organization.