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What is the Difference Between Bookkeeping and Accounting?

June 22, 2021 3:49 pm

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For those of you who are new to this business, the accounting and bookkeeping business may seem a little confusing at first. However, with just a little effort on your part, you will soon see that there are only two basic areas that need to be covered in order for you to have an effective business. Your accountant covers financial transactions such as your income statement, balance sheet, and statement of cash flows along with preparing your income tax return and sending it to the government for you to file electronically. Bookkeeping, on the other hand, simply keeps you up to date with records of all financial transactions and any other information that would need to be documented.

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If you want to get into the world of accounting, you first need to enroll at an accounting, finance, or bookkeeping school. Find out more about Accountants Tewkesbury at a site like Randall & Payne, a leading Accountants Tewkesbury.

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So what is the difference between accounting and bookkeeping? Basically, bookkeeping simply involves keeping track of money by using accounting software. While there are similarities between accounting and bookkeeping, they are quite different from one another. While some people may confuse the two and think they are the same thing, nothing could be further from the truth. Bookkeeping is concerned with making sure that all of your financial records are accurate and up-to-date, while accounting mainly deals with paying your bills on time and making sure that your business has enough money to pay those bills, dealing with taxes and finding out where the best investments are.

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