Differences between Bookkeeping and Accounting. ... In the simplest of terms, bookkeeping is responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data.

Book-keeping vs Accounting vs Accountancy
Book-keeping, accounting, and accountancy are all related to the financial aspects of a business, but they serve different purposes and have distinct roles.

Book-keeping
- Book-keeping is the process of recording financial transactions of a business in a systematic manner.
- It involves maintaining accurate records of day-to-day transactions, such as sales, purchases, receipts, and payments.
- The main goal of book-keeping is to provide a clear picture of the financial health of the business.
- Book-keeping is mainly focused on recording and organizing financial data for future analysis and decision-making.

Accounting
- Accounting involves interpreting, classifying, analyzing, summarizing, and reporting financial transactions recorded in the books of accounts.
- It includes preparing financial statements, such as the income statement, balance sheet, and cash flow statement, to provide a comprehensive overview of the business's financial performance.
- Accounting helps in assessing the financial position of the business, making informed decisions, and complying with regulatory requirements.
- Accountants use the information provided by book-keepers to analyze the financial data and provide insights to stakeholders.

Accountancy
- Accountancy is a broader term that encompasses both book-keeping and accounting.
- Accountancy involves the overall management of financial information within an organization.
- Accountants play a crucial role in providing financial advice, strategic planning, and risk management to help businesses achieve their financial goals.
- Accountancy requires a deeper understanding of financial principles, regulations, and standards to ensure accurate and reliable financial reporting.
In conclusion, while book-keeping focuses on recording financial transactions, accounting involves interpreting and analyzing this data, and accountancy encompasses the broader management of financial information within an organization. Each plays a vital role in maintaining the financial health and success of a business.