Sunday, August 5, 2018

DISTINCTION BETWEEN BOOK-KEEPING AND ACCOUNTING


Book-keeping is a part of accounting and is concerned with the recording of transactions which is often routine and clerical in nature, where as accounting performs other functions as well, viz., measurement and communication, besides recording. An accountant is required to have a much higher level of knowledge, conceptual understanding and analytical skill than is required of the book-keeper.
 
An accountant designs the accounting system, supervises and checks the work of the book-keeper, prepares the reports based on the recorded data and interprets the reports. Nowadays, he is required to take part in matters of management, control and planning of economic resources.

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