Bookkeeping and accounting are totally different procedures. This seems same because they have some same characteristics like both deal with the data that is financial, they both generate reports by classifying the financial transactions. Having basic knowledge about accounting is necessary for both accounting as well as bookkeeping.
In accounting, classification, interpretation, analyzing, summarizing and reporting of financial data is required.
Advancements in Bookkeeping and Accounting
With time, there have occurred many advancements in the fields of bookkeeping and accounting. The difference between both is fading away and now the softwares of bookkeeping have the facility of generating financial statements. Bookkeeping staff and softwares will soon be able to do other tasks that are provided by the accounting only, in short the services will be extended. Professionals of bookkeeping are now trying their best to put records like reports online as well to make access to them easier for people. The services are not only become easier to be reached but will be cheaper in future.
On the other hand, in bookkeeping only the record of that financially analyzed, reported, summarized, classified and interpreted data is kept safe.
Both of them are known for providing varying advantages.
What other things make bookkeeping and accounting different?
In accounting, the management can take business decisions on the data that is provided by accountants. Secondly, in accounting the data is displayed and further passed to the related authorities.
Thirdly, all financial statements are prepared being in the process of accounting by the person who is specially skilled because the tasks it includes are complexed and analytical. In accounting the reports are made by compiling the reports that are derived from interpreted and analyzed data. The department of accounting deals with the loans proposals and company’s budget.
Accountants that have required experience as well as education will be given title of Certified Public Accountant also known as CPA.
If we have a look at Bookkeeping, data that is provided by bookkeeping will not have decisions made by the management. Record of all financial transactions be it systemic or proper.
Financial statements are not prepared as being the part of a process of bookkeeping nor does it need any special skills or analyses. There are two types, double entry and single entry. They need to be accurate. Accounting and bookkeeping services in Dubai are also available. Dubai VAT consultants are also well known widely.