Accounting & Bookkeeping

Bookkeeping is the process of recording all financial transactions of a business in a systematic and organized way. This includes recording sales, purchases, receipts, and payments. It ensures that every financial activity is properly documented in the company’s books.

Accounting goes a step further. It involves analyzing, summarizing, and interpreting the data recorded during bookkeeping. Accountants prepare financial reports like the profit and loss statement, balance sheet, and cash flow statement to help in decision-making.

In simple terms, bookkeeping is about recording, while accounting is about interpreting and using that information to understand the financial health of a business.