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I want to know what's the deference's between accounting & bookkeeping?


I want to know what's the deference's between accounting & bookkeeping?

Bookkeeping is the entering of all information from the source documents (receipts), and accounting is the annalyzing and interpretation of the data. Using the information to make decisions.

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According to the first source cited below:

"Bookkeeping encompasses the record-keeping aspect of accounting and therefore provides much of the data to which accounting principles are applied in the preparation of financial statements and other financial information."

...and from the second source:

"Accountancy attempts to create accurate financial reports that are useful to managers, regulators, and other stakeholders such as shareholders, creditors, or owners. The day-to-day record-keeping involved in this process is known as bookkeeping.

At the heart of modern financial accounting is the double-entry bookkeeping system. This system involves making at least two entries for every transaction: a debit in one account, and a corresponding credit in another account. The sum of all debits should always equal the sum of all credits. This provides an easy way to check for errors..."

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