For a common man, Bookkeeping and Accounting may appear all the same but to a professional, these are vastly different. Let us look at some of the differences between the two.

✓  Booking relates to identifying, measuring, and noting down details of financial dealings whereas Accounting relates to briefing, analyzing, and reporting financial transactions.

✓ Bookkeeping is extremely technical and the inferences drawn by Data in a book can't be interpreted by managers. Accounts are rather less technical since they're reports ready for interpretation and they can be understood by managers.

✓ Bookkeeping doesn't involve creating financial statements but accounts deal with creating financial statements.

✓ Bookkeeping doesn't require a special skill set but Accounting deploys unique skills due to its complex nature.

✓ Bookkeeping doesn't involve analyzing the data since it deals only with recording it, but Accounting is all about analyzing the data in the books.

✓ Bookkeeping are required to be extremely precise in their job and must have good intel on financial issues. Accounts revolve around understanding and analyzing the data this need for extreme precision is unnecessary although desirable.

✓ Bookkeeper's work is supervised by an accountant but an accountant only reports to the management.

 
The following benefits make Bookkeeping an essential requirement in modern Business Accounting.

✓ Detailed Database: A good Bookkeeper keeps his records up to date which helps in supervising Business accounts and creating financial statements.

✓ Legal compliance: Bookkeepers need to comply with the latest laws and rules relating to accounts and financial records. Doing this saves a lot of time and effort of a bookkeeper during filing reports and presenting data.

✓ Ease of planning: Bookkeeping keeps all data in one place hence it is easy to look at it and interpret the future of your Business easily. This presents a chance to make better financial decisions and grab opportunities that appear before you.

✓ Quick reporting: An updated balance sheet is a report ready to be read and analyzed at any time, which can be presented to a Business prospect, providing additional confidence in your managerial skills and your company's performance.

✓ Cordial ties with financial institutes: It gets easier to apply for and get loans sanctioned if your books are neat and convincing for a loan officer or an investor. Banks and financial institutes are more likely to give loans to a Business that has well-maintained books.

✓ Easy filing for Taxes: Organised books make filing for and getting Tax returns a hassle-free process.

✓ Easier Audits: With good books, an auditor will have a much easier time auditing your books and interpreting results than with a poorly maintained book.