Some people would like to distinguish whether accounting is the same as bookkeeping. Whether someone says he is an accountant, and says he is also a bookkeeper, really matters. What is the difference between a bookkeeper and an accountant?
Bookkeeping is the process of recording the financial transactions of a business, systematically and in an organized manner. The proper recording of these transactions must also show how each relate to each other. This does not involve analysis of the financial transactions but only the proper recording of the entries. The entries are traditionally kept in a book; that is why it is termed bookkeeping.
Nowadays, the bookkeeping process is now automatically performed with the use of a bookkeeping software package. However, the names of the books are still being utilized until now such as the cashbook, daybook, ledger, and journal. The major function of a bookkeeper, such as an NYC bookkeeper; is basically to record the daily financial transactions the business company completes and post it in the ledger or journal. The bookkeeper is sometimes called an accounts clerk.
Bookkeeping is of two types; the single entry and the double-entry type. The recording done for the single-entry bookkeeping for only a single account carries each transaction whether to the debit column or to the credit column of the transaction. When there are two entries of each transaction being carried to the ledger, this is called double entry bookkeeping. The debit side carries one entry and the credit side carries the other entry of the corresponding account. In this way, the two entries can be easily used to check or track any discrepancy which is ably performed by bookkeepers New York.
Accounting makes use of the recorded transactions done during the process of bookkeeping with the addition of the reporting and analysis of these financial transactions. Because the recorded transactions are utilized within the scope of accounting, the bookkeeping system then forms part of the accounting system. The process of accounting also includes the finalization of statements about the company’s assets, liabilities, and the concluding financial statements about the business operation.
The occupation or career relation to accounting is termed accountancy, and the person who functions or is responsible in working for the job in accounting is called an accountant. These professionals are highly knowledgeable and skilled in the field of auditing, management, and the preparation of taxes. The accountant can perform both the tasks of bookkeeping and accounting but it is difficult for a bookkeeper to accomplish the job of an accountant. In a small company, the bookkeeping and accounting tasks can be performed by a single person, which is the accountant.
August 11th, 2011 | Accounting, Bookkeeping | No comments