DIFF. BETWEEN BOOK KEEPING AND ACCOUNTING

DIFF. BETWEEN BOOK KEEPING AND ACCOUNTING

Book Keeping
Accounting
1. It is the process concerned with recording of transaction
1. It is the process concerned with summarizing of the recorded transaction.
2. It is the basic of accounting.
2. It is the basic of business language.
3. Person responsible of book – keeping are called book keeper.
3. Personal responsible for accounting are called accountant.
4. It does not require any special skill or knowledge.
4. It requires special skill and knowledge.
5. Personal Judgement of the book keeper is not required.
5. Personal judgement of the accountant is essential.
6. Financial statement are not prepared from book keeping record.
6. Financial statements are prepared from accounting records.
7.It does not give the complete picture of the financial condition of the business unit.
7. It gives the complete picture of the financial conditions of the business unit.
8. It does not help complying with legal formalities.
8. Legal formalities can be complied with help of accounting.
9. It does not provide any information for talking managerial decision.
9.It provides Information for talking managerial decision.
10. It has no Branches.
10. It has several branches like Financial accounting, cost accounting, Management accounting etc.


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