Book-Keeping and Accountancy are very closely related. Book-Keeping involves the recording of business transactions in books of accounts. Whereas Accountancy involves analysing the book-keeping records.
Accountancy starts where bookkeeping ends. Accountancy is a much broader concept than bookkeeping.
Accountancy is more about the interpretation of business transactions. The interpretation of the business transactions is done by classifying and summarising business transactions.
Under bookkeeping, we just record the transaction in a timely manner. However, accountancy deals with the interpretation of those transactions.
How is accountancy different from bookkeeping?
Book Keeping is the first stage whereas accountancy follows bookkeeping.
Bookkeeping comes immediately after a transaction has happened. Accountancy classifies and summarises the transactions which are recorded under book-keeping.
Book Keeping gives you day to day details of your business whereas accountancy gives you the details of the business of the entire year. Thus Bookkeeping has a limited scope whereas accountancy is much wider.
Also refer - Bookkeeping; Meaning and Objectives
Accountancy starts where bookkeeping ends. Accountancy is a much broader concept than bookkeeping.
Accountancy is more about the interpretation of business transactions. The interpretation of the business transactions is done by classifying and summarising business transactions.
Under bookkeeping, we just record the transaction in a timely manner. However, accountancy deals with the interpretation of those transactions.
How is accountancy different from bookkeeping?
Book Keeping is the first stage whereas accountancy follows bookkeeping.
Bookkeeping comes immediately after a transaction has happened. Accountancy classifies and summarises the transactions which are recorded under book-keeping.
Book Keeping gives you day to day details of your business whereas accountancy gives you the details of the business of the entire year. Thus Bookkeeping has a limited scope whereas accountancy is much wider.
Also refer - Bookkeeping; Meaning and Objectives
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