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Accounting vs Bookkeeping

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Accounting vs Bookkeeping

Let’s take a moment to distinguish the difference between accounting and bookkeeping.


Bookkeeping refers to the record keeping aspects of accounting. It’s the process of recording all the detailed information regarding the transactions and other activities of a business.


Accounting enters the realm of designing the bookkeeping system, establishing controls to make sure the system is working well, and analyzing and verifying the recorded information. Think of accounting as what goes on before and after bookkeeping. Accountants design the bookkeeping and accounting system (before) and use the information that bookkeepers enter to create financial statements, tax returns, and various internal-use reports for managers and owners (after).


The accountant is there to provide financial advice and recommendations, to help you with any issues relating to taxation. The accountant will be working from the bookkeeper’s figures.


In simple language, Accountants give the orders; bookkeepers follow them.