Bookkeeping Vs. Accounting—3 Major Differences

Bookkeeping and accounting are two of the most important functions in any business. The two departments also collaborate in many of the tasks they perform. While both accounting bookkeeping service deal with numbers and data, the two services are quite different.

In this post, we contrast the two services in detail.

1- Primary Objective

The primary objective of bookkeeping professionals is to record and organize data efficiently so that employers can easily access it for analysis. Bookkeeping also involves identifying, measuring, and extracting data from digital and non-digital sources. These professionals are also responsible for recording all kinds of transactions.

Accounting, on the other hand, has to do with analyzing data. Accountants use different statistical and financial models to interpret data. Furthermore, the accounting department is responsible for summarizing the data for other departments.

These professionals also analyze transactions and “balance the book” to ensure all spending and revenue are accounted for. Accountants are also responsible for catching any inconsistencies in a company’s data. For example, if some amount of money or a commodity goes missing, it’s the accountant’s job to catch it.

2- Required Skills

Bookkeeping requires a wide range of general skills, most of which are soft skills. Bookkeeping professionals have a fast typing speed, they’re excellent at organizing data, and they can pay attention to detail. Bookkeepers also know how to use different devices and applications, and new technologies.

In comparison, accountants have a more focused set of skills which are mostly hard skills. Accountants need to have excellent mathematical skills, and their job relies on calculations and statistical analyses. They are also good at representing data in easily conceivable ways, such as pie charts and line graphs. These professionals also need to be able to use data analysis software such as MS Excel and Matlab.

3- Responsibilities

Bookkeeping professionals are responsible for data accuracy. They are expected to recheck their data for any errors before presenting it to the accountants. These experts are also responsible for providing the data on time since the rest of the organization depends on it.

recording-data-pen-paper-notebook

Whereas accountants are responsible for catching any inconsistencies in the data and investigating the origin of the inconsistency. They are also responsible for the correctness of their results, and they’re expected to recheck their analyses before turning them in.

Once you know the difference between accounting and bookkeeping, you can easily determine what your organization requires. 3 Alpha LLC has online timely Bookkeeping Services for small businesses and accounting services to help you maintain your business’s accounts and finances.

Contact them to get your preferred accounting or bookkeeping service based on your business requirements.

 

 

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