What is the difference between accounting and
bookkeeping? Technically the answer lies
what services the person is performing. If the person is just recording the
basic financial transactions of the company then he is a bookkeeper. If a person is responsible for all of the
financial reporting or creating the
methods of accounting use then he is an accountant.
Accounting is the big picture. It is the system
establishes to keep a track of all of the financial data. It creates the basis
of financial reports that shows how your company is doing. Accounting include
every concept of finance of your company including things like account
receivable, accounts payable and
payroll. It also track and manages the
information regards the TAX your company need to pay and receive. Bookkeeping
is the daily grind. It’s a systematic
recording of dates, amounts and accounts affected by every financial
transaction occur in company. In larger
companies this type of data management may be broken down into small
departments with more accurate responsibilities to individuals. There can be one person who is responsible of
entering data of transactions effected by accounts payable and the other person
is responsible to enter transactional data of accounts receivable. Depending
upon how large the company is .there can be whole departments to handle these
major aspects of bookkeeping.
In smaller companies the owner can be responsible for all
the bookkeeping for the company. You are also heard about the professionals who
prepare for tax. These people may called
as account persons. Technically they are not accounts. Initially accountants
fill the forms of tax, this was their only duty. Later the tax preparation became
increasing complicated and become a totally different field from
accounting. Tax preparation is totally
different then accounting and bookkeeping now.
Most educated individuals know how to organize the tax data and entered
in to the tax form are called tax preparer.
There are also those persons including some CPA’s Certified Public
Accounts who can perform all free Tax calculations.
