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.
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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.
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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)
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Personnel Involved | Book keeping is performed by clerks and accountants. | Accounting is performed by accountants and management. |