Bookkeeping is the process of recording and organizing all financial transactions of a business, including purchases, sales, receipts, and payments.
It serves as the foundational layer of accounting, ensuring that financial records are accurate, up-to-date, and comprehensive.
This systematic process is crucial for businesses to track their financial health, comply with legal obligations, and make informed financial decisions.
A bookkeeper is responsible for maintaining accurate records of financial transactions, which includes recording day-to-day financial transactions, categorizing them, and preparing financial statements.
They play a crucial role in managing an organization's cash flow, ensuring the accuracy of financial data, and supporting the preparation of tax returns.
Bookkeeping is the systematic recording of financial transactions and maintenance of financial records, focusing on the day-to-day management of financial data.
Accounting builds upon this foundation, using the recorded data for analysis, interpretation, and strategic financial planning.
Although bookkeepers and accountants both handle financial duties, the key distinctions between them revolve around the range of services provided and their professional qualifications.