Bookkeeping includes day-to-day financial transactions such as: paying suppliers, billing for services provided or goods sold to clients, documenting receipts from customers, recording invoices, processing employees’ payroll, financial reporting, monitoring accounts receivable, recording depreciation, and providing financial reports.
Accounting is the process of keeping financial records, and then analyzing, verifying, and reporting the results. A large aspect of accounting is presenting the information in the form of financial statements, such as a balance sheet or income statement. Internal analyses can include budgets, standards for controlling operations, cost of goods sold, quotes, etc. Accounting can be the driving force behind a company’s success. Without accurate financial reports, management would never know if the company is financially healthy or not.
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