Difference between Accounting and Bookkeeping

This is edited for testing Gatsby deploy and preview. For a business operation to run smoothly, it requires a backbone of accounting and bookkeeping. Business size doesn’t matter, the importance of Accounting and Bookkeeping Services for startups, Micro, Small and Medium Enterprises (MSMEs) and also corporations remains never-changing. Accounting and bookkeeping are essential aspects that all businesses should abide by. Many businesses fail due to improperly managed accounts and financial management.

Accounting is a process to keep a track of business’ financial status. It starts with the process of bookkeeping and finishes with reporting data and information as a financial statement at the end of every financial year.

What Does an Accountant Do?

• Examine financial statements to ensure accuracy 
• Prepare financial statements such as balance sheets, income statements, and cash flow statements to help you assess the financial health of your business. 
• Compute taxes owed, prepare tax returns, ensure prompt payment 
• Analyzing the cost of operations 
• Make financial recommendations to management

Bookkeeping is a crucial first step in the accounting process. Bookkeeping is the task of timely recording all business transactions — amounts, dates, and sources of all business revenue, gain, expense, and loss transactions. Bookkeepers lay the groundwork for the accountants by recording the financial transactions such as maintaining the general ledger, tracking income and expenses, managing bank reconciliations, managing accounts receivable and payable, providing financial statements and completing payroll. Accuracy is therefore vital to the process.

Importance of bookkeeping is essential for your business growth and development 

• Having a Better Cash Flow 
• Fulfilling Tax Obligations 
• Ease of Business Performance Evaluations
• Smooth Business Planning 
• Proper Record Keeping as Required by Law 

How to be a Bookkeeper? 

• Must have a Bachelor’s Degree in Accounting related courses 
• Knowledgeable in Xero or other similar accounting software 
• Must be proficient in using Microsoft Office especially in Excel and Word 
• Attention to details, due diligence for accuracy and utmost trustworthiness

How to be an Accountant? 

• Must have a Bachelor’s Degree in Accounting/Finance 
• Must be a Certified Public Accountant 
• Master’s Degree in Accounting or Business Administration 
• Proficient in using Xero or other similar accounting software  
• Excellent computer skills using Microsoft Office  
• Strong analytical skills with attention to details and utmost trustworthiness 
• Strong communication and interpersonal skills

Need an Accountant and Bookkeeper in One?

AccountablePH provides bookkeeping services for your businesses:

• Online Transaction Records  
• Digital Book of Accounts  
• Automated Financial Statements  
• Auto-correct Bank Reconciliation  
• Tax Computation  
• Depreciation Schedule  
• Secured Compliance  
• 24/7 Customer Support 

We pride ourselves on our team of Certified Public Accountants, Certified Bookkeepers, Transfer Pricing Analyst, Xero-Certified Advisers, and Xero-Certified Payroll Specialists.