Lots of people who do not understand and assume if accounting is the same as bookkeeping. The thing is actually different. Even so, the two are related to each other where the beginning of accounting activities is started from bookkeeping activities. Not only that, accounting and bookkeeping have the same financial information data source within the company bookkeeping services. Although different, accounting and bookkeeping have a close relationship and are an integral part. bookkeeping services will act as the basis of the accounting process and if the bookkeeping process is done in the right way, the accounting process will be perfect.
What really distinguishes accounting from financial accounting? Differences in accounting and bookkeeping can be easily understood by knowing the meanings of each. Bookkeeping is a systematic, complete printing process of monetary transactions in an organization. Bookkeeping is an activity to safeguard each entity’s financial transactions to form a basic reference in the accounting process. The purpose of bookkeeping is to provide a clear picture of income and expenditure at the end of the accounting period. Bookkeeping assignments are usually carried out by bookkeepers. The bookkeeper is in charge and responsible for recording every business transaction whether it is cash, goods, selling and buying transactions and then records it into a ledger and then prepares it into the trial balance. To find out more, here are the activities carried out by financial accounting:
Publish invoices to customers.
Record invoices from suppliers.
Record changes in inventory.
Record cash receipts from customers.
Process petty cash transactions.
Meanwhile, accounting is a business language that provides information about financial status in a company starting from recording transactions and making financial reports at the end of the period. In accounting, the monetary transactions of a company will be systematically recorded and grouped depending on the type of transaction then summarized and displayed to the company in an adjusted form. The following are activities carried out by accountants:
Make a list of accounts.
Preparing the Ledger.
Design financial statements.
Publish management reports that are tailored to specific issues.
Make a budget and compare it with the actual results.
Make tax reports etc.