Accounting = Bookkeeping?
It’s more or less the same?
The terms accounting and bookkeeping are inter-related.
However, there are some differences.
Accounting
From bookkeeping, we analyses the data and turn it into meaning full data by applying relevant accounting standard and compliance with rules and regulations. This is where the financial statements were presented. Financial statements that were used to make business decision such as budgeting planning, forecast and cashflow projection.
Bookkeeping
Bookkeeping begins from data, that is, the source documents. It is a function of accounting, a process whereby the source documents were compile, stored and recorded. It may sound simple but an effective and efficient way of doing bookkeeping makes the difference. A good bookkeeping practice sets a good foundation for accounting to begin with.