Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Watch Video Schedule Free Consultation
Step 1: Analyzing financial transactions and assigning them to a specific account
Step 2: Writing original journal entries that credit and debit the appropriate accounts
Step 3: Posting entries to ledger accounts
Step 4: Adjusting entries at the end of each accounting period
| Book Keeping | Accounting |
| Book Keeping is concerned with identify financial transaction; measuring them in money terms; recording them in the books of account and classifying them. | Accounting is concerned with summarising the recorded transaction, interpreting them and communicating the result. |
| It is a primary stage. It us the basis of accounting. | It is a secondary stage. It Begins where Book Keeping ends. |
| The Objective of Book Keeping is to maintain systematic records of financial transactions. | The Objective of Accounting is to ascertain net result of operational and financial position and to communicate information to interested parties. |
| This job is routine in nature. | This job is analytical and dynamic in nature. |
| It being a routine work is performed by junior staff. | It being a specialised function is performed by senior staff. |
| Book Keeping is mechanical in nature and, thus, does not require special skills. | Accounting required special skills and ability to analyse and interpret. |