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What is the difference between Accounting And bookkeeping.

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  • Accounting
  • 2021-04-26
  • Mr. Wasim Firoz

What is the difference between Accounting And bookkeeping.

In Accounting or financing language,  the term accounting and bookkeeping are almost used interchangeably because they both deal with business accounts. However both concepts are different but if someone asks about the difference between accounting and bookkeeping it becomes taught to describe because both support the business finance in different stages and ways. Let's take a look at the difference between Bookkeeping and accounting.

What is Accounting?

Accounting is high level work that uses the financial information that is accumulated by the bookkeeping and business owners. Accounting is the process of systematically recording, communicating and measuring about business finance and financial transactions. It determines the business finance position & health and Position of the stakeholders. It plays a vital role in decision making for a short and term period and passes the reliability of the company in the market.

The main purpose of accounting is to provide a clear view of the finance with the full insight for the business users like owners, stakeholders, employees, government and etc that’s why it’s more subjective in comparison to bookkeeping. In accounting, an accountant converts the information into ledgers and then into statements that present the business financial situation and how business is going. 

What is Bookkeeping?

Bookkeeping is the essential key to building a successful business. Bookkeeping is a process of the classification and recording of each transaction of the business consistently. 

It's said to be basic accounting. The importance of bookkeeping is that it maintains each record of the monetary transaction. Businesses use this information for business financial statements and investment decisions. 

The complexity of the bookkeeping is dependent upon the business size and how much financial transaction is done weekly, daily or monthly.  All the sale purchase transactions are recorded in the bookkeeping book. 

To be a successful bookkeeper we don’t need  any formal education. We can become experts in bookkeeping easily. Bookkeepers always work under the eye of either accounting or business owners. Keep in mind bookkeepers can’t call themselves accountant. 

The bookkeeping process contain:-

  1. Identifying a financial transaction
  2. Recording a financial transaction
  3. Preparing a ledger account
  4. Preparing trial balance


What Is the Difference Between Bookkeeping and Accounting?







Accounting means summarizing the data and communicating with business financial information to make financial statement, preparation for tax returns.

Bookkeeping means identifying each transaction to record systematically only.


We all know that a business financial statement and balance sheet is prepared by the accountant, Based on the financial statement and balance sheet business management take important steps for the business growth.

Bookkeepers just record the  transaction and provide trial balance which is not helpful for decision making. It’s used by the only accountant.

Financial Preparation

Financial report is very important and created by the accountant. 

Financial report is not prepared by the Bookkeepers.


To create insight, accountants have to analyze the data for financial statements and balance sheets.

For Bookkeeping, we don’t need any kind of analysis. 


A person who takes care of business accounts is known as an Accountant.

A person who only records the transaction is known as bookkeepers.

Determine the Financial Position of the business

Accounting presents the clear picture of the business financial positions.

Bookkeeping of the transaction does not show the financial position of the business.


Required the higher qualification to analyse and understand the accounting concepts.

Not required for higher qualification. 



We hope this short information helps you  to understand the difference between bookkeeping and accounting. To get tailor-made accounting and bookkeeping service contact risians accounting and auditing firm in dubai, leading firm in dubai who has practically working experience in different industries, shops, malls and Projects.

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Mr. Wasim Firoz AUTHOR

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