Q&A of the Week August 31, 2022

Question:

What is the difference between accounting and bookkeeping?

Answer:

Accounting is interpreting and presenting financial data to business owners and investors. Accounting generally includes financial statements and reports, budgets, tax returns, and an analysis of business performance. Accounting services typically cost more.

Bookkeeping focuses on organizing and recording financial data. Bookkeeping generally includes payroll, invoicing, receipts and bills, and recording business transactions.

Depending on the business, there may be overlap in the roles an accountant and bookkeeper play. Overall, they are important parts of the management of finances.