Distinguishing Accounting and Bookkeeping

While often used interchangeably, accounting and bookkeeping serve different purposes. Bookkeeping involves the day-to-day recording of financial transactions, whereas accounting encompasses a broader scope, including financial analysis and reporting.

Roles and Responsibilities

Bookkeepers focus on maintaining accurate records, while accountants interpret those records to provide insights into financial performance. Understanding these differences is essential for business owners to effectively manage their finances.

Both roles are vital for a business's financial success.