**Difference between Bookkeeping and Accounting**

**Bookkeeping:**
Bookkeeping is the process of recording and maintaining financial transactions of a business. It involves the systematic and accurate recording of all financial transactions, such as sales, purchases, receipts, and payments, in a chronological order. Bookkeeping is the foundation of accounting.

**Accounting:**
Accounting is a broader concept that encompasses bookkeeping. It involves the analysis, interpretation, classification, and summarization of financial data recorded by bookkeepers. Accounting provides meaningful information to users for decision-making purposes. It involves preparing financial statements, analyzing financial data, and interpreting the results to give a clear picture of a company's financial position.

**Differences:**

**1. Scope:**
- Bookkeeping is concerned with the recording and maintenance of financial transactions.
- Accounting involves analyzing and interpreting financial data to provide useful information for decision-making purposes.

**2. Function:**
- Bookkeeping is a part of accounting and focuses on recording and classifying financial transactions.
- Accounting involves more complex tasks such as analyzing financial data, preparing financial statements, and interpreting the results.

**3. Objective:**
- The objective of bookkeeping is to maintain accurate and complete records of financial transactions.
- The objective of accounting is to provide relevant and reliable information about the financial performance and position of a business.

**4. Level of Analysis:**
- Bookkeeping involves the recording of transactions at a basic level, such as posting entries to journals and ledgers.
- Accounting involves a higher level of analysis, such as preparing financial statements, conducting ratio analysis, and interpreting financial data.

**5. Decision-making:**
- Bookkeeping provides the raw data necessary for accounting, which in turn provides the information required for decision-making.
- Accounting provides information that helps stakeholders make informed decisions about the financial health of a business.

**Conclusion:**
In summary, bookkeeping is the process of recording and maintaining financial transactions, while accounting involves analyzing and interpreting financial data to provide meaningful information for decision-making. Bookkeeping is a fundamental part of accounting, as it provides the necessary data for accounting activities.