Accounting and Business Bookkeeping are frequently used interchangeably when in fact bookkeeping is only a part of accounting.
It is understood that business bookkeeping is the processing of registering transactions in the books. It means taking the numbers that represent all the transactions involved in the daily activities of a business: cash, accounts receivable, accounts payable and taxes paid. Other more complex recording of assets and liabilities are done through business accounting.
Business Bookkeeping is only a part of Accounting, the latter also implies the analysis and interpretation of the data gather through bookkeeping and which later is present in a more detailed way.
With the creation of software for accounting, business bookkeeping has become obsolete, since the system is responsible for delivering complete information that is ready to be interpreted and analyzed.
Accounting is a tool for analysis and interpretation of information from the company, and each day becomes more and more important at the level of senior management. Accounting, as opposed to business bookkeeping, is the basis on which decisions are taken by economic and financial managers.
Accounting allows companies to create elaborate analysis of transaction and identify negative patterns in their operations in order to strategically solve those issues.
Then, do we really need bookkeeping? Business bookkeeping is provides a way for companies to record, develop, prepare and organize the ins and outs of a business so that they are available for further review.
Business bookkeeping helps accounting to record in chronologic order all the transactions that a company has on a daily basis. The books show a picture of what the business was doing, when, and how much it cost. This information can be later classified, organized, and used for whatever the company deems useful. - 20767
It is understood that business bookkeeping is the processing of registering transactions in the books. It means taking the numbers that represent all the transactions involved in the daily activities of a business: cash, accounts receivable, accounts payable and taxes paid. Other more complex recording of assets and liabilities are done through business accounting.
Business Bookkeeping is only a part of Accounting, the latter also implies the analysis and interpretation of the data gather through bookkeeping and which later is present in a more detailed way.
With the creation of software for accounting, business bookkeeping has become obsolete, since the system is responsible for delivering complete information that is ready to be interpreted and analyzed.
Accounting is a tool for analysis and interpretation of information from the company, and each day becomes more and more important at the level of senior management. Accounting, as opposed to business bookkeeping, is the basis on which decisions are taken by economic and financial managers.
Accounting allows companies to create elaborate analysis of transaction and identify negative patterns in their operations in order to strategically solve those issues.
Then, do we really need bookkeeping? Business bookkeeping is provides a way for companies to record, develop, prepare and organize the ins and outs of a business so that they are available for further review.
Business bookkeeping helps accounting to record in chronologic order all the transactions that a company has on a daily basis. The books show a picture of what the business was doing, when, and how much it cost. This information can be later classified, organized, and used for whatever the company deems useful. - 20767
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