What's the difference between bookkeeping and accounting? - Forum

Hi Alex,

good question!

Though the terms are often used interchangeably, bookkeeping is quite a restricted activity that deals with collecting and recording the financial activities and transactions of an entity.

Accounting, on the other hand, is a much broader term that refers to all the processes involved in recording, summarising, reporting and - crucially - interpreting financial information in order to determine the financial performance of a business.

Bookkeeping is thus a subset of accounting, so while it can be said that accounting encompasses bookkeeping activities, the reverse is not true. As a result, accountants will typically need a broader skillset than bookkeepers.

You can search for courses covering both types of activity here.

Hope this helps!

Best,

The Findcourses.co.uk Team

The terms “bookkeeper” and “accountant” can be interchanged to a degree, so I’m going to focus on the literal job roles. Many bookkeepers get their start acting as a data-entry clerk or entry-level bookkeeper for a business and grow, through experience and merit, into being a go-to person for the day-to-day financial recording. The term “bookkeeper” is pretty literal: The bookkeeper keeps the books and retains documentation for transactions.

An experienced or certified bookkeeper may eventually move into being an accountant (the terminology and rules on what a bookkeeper may do and call themselves may be dictated by state accounting boards). An accountant may also focus on reporting, business analysis and processes, and possibly advice. Many times a bookkeeper and accountant work in tandem, with the bookkeeper operating as a “feet on the ground” professional, promoting a stronger relationship between an accountant and a business owner.