what is the difference between book keeping and accounting?

Basis of Comparison

Book Keeping

Accounting

Meaning

Book keeping is an art of recording transactions in a systematic manner.

Accounting involves book keeping, summarising, analysing, interpreting and communicating the results of business to the various users of accounting information.

 

Scope

It is concerned with recording and classifying transactions.

It is not only concerned with recording and classifying transactions but also concerned with preparing and analysing financial statements.

 

Financial Statements

Book keeping forms the basis for preparing financial statements.

Accounting is not only concerned with book keeping but also concerned with preparation of financial statements (i.e  Income Statement and Balance Sheet)

 

Personnel Involved

Book keeping is performed by clerks and accountants.

Accounting is performed by accountants and management.

 

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