Differences Between Accounting and Bookkeeping

Accounting and Bookkeeping Paper
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Bookkeeping primarily refers to the accounting aspects of accounting; it is mainly the process or rather the core of recording all information related to financial activities and transactions of an organization, the project, or company. On the other hand, accounting constitutes an indispensable sub-category of accounting. The term accounting is conceived as much broader, incorporating the accounting system design, developing controls to ensure the appropriate working of the system, and evaluating and verifying the recorded information. The accountants provide orders; the bookkeepers follow them (Peterson, 2020). This paper delineates the differences between bookkeeping and accounting.
Bookkeepers are normally tasked with maintaining accurate and precise information and generating crucial reports that keep the company’s decision-makers updated regarding the firm’s financial status. Bookkeepers are also tasked with sustaining the “company checkbook” as they record routine transactions such as cash receipts and disbursement journals. They also evaluate payrolls. Accountants are tasked with designing and managing financial systems that bookkeepers leverage. They are responsible for preparing tax returns and financial statements at the end of the fiscal. Accountants are also tasked with creating budgets for bank loan proposals and budgets for management, as well as performing cost analyses on firm products and services (Peterson, 2020).
Apple Inc. constitutes the most valuable firm globally. Market values support this statement because it was approximately $1.9 trillion in August 2020. This assertion is derived from accounting information rather than the simplistic bookkeeping process that does not generate financial reports. In order to make investment decisions, investors utilize public financial and accounting information published by companies such as Microsoft and Apple (Roff, 2023). Bookkeeping does not significantly impact investment decisions because it includes information like deposit slips, banking information, and canceled checks (Peterson, 2020).
Bookkeeping follows a sequence of fundamental steps, as...