The first difference between bookkeeping and accounting is the accounting term itself. Accounting is a broader term. Accounting is a field of work that has a relation financial data processing and its supportive elements such as searching, collecting, recording, analyzing, interpreting, reporting and even making policies related to financial data from those who need it. The individual who is responsible for this process is called an accountant. Meanwhile, bookkeeping is the recording stage in the accounting process. Bookkeeping refers to the aspect of storing accounting records, and this includes all information about the transactions and financial activities of a business. From this understanding, we can conclude that bookkeeping is part of accounting itself. Meanwhile, if you also need a reliable accountant who can operate XERO, we recommend you to hire the best expert of Xero Gold Coast.
The Purpose of Bookkeeping and Accounting
Every business transaction recorded in books such as cash, goods, sales, and purchases aims to provide an overview of revenues and expenses at the end of the accounting period. Meanwhile, the accounting process aims to provide a variety of reports that can unite the main financial indicators. The result is a better understanding of actual profitability and awareness of cash flow in the business. Accounting converts information from ledgers into statements that reveal a bigger business picture.
Bookkeepers who are responsible for recording daily business transactions have at least a diploma in accounting. A book holder is required to be accurate in presenting data because the ledger contains detailed information about the transaction per day. A bookkeeper must also have knowledge of the main financial topics. While working, they will be supervised by accountants or business owners whose books are being processed.
For accounting job qualifications, it will usually be managed by an accountant who has at least obtained a bachelor’s degree. Accountants should also obtain additional professional certification by taking the Public Accountant Certification Exam. An accountant is generally able to do a broad enough task even to conduct audits, review reports, and represent clients before the IRS. They are required to be meticulous, measured, skeptical, logical, consistent, disciplined and compliant with applicable ethics.