Accounting is secondary whereas book keeping is primary . book keeping includes- it records only financial transactions , it records only money transaction , financial transactions is classified . accounting includes—summarising, analysis and interpretating, communication

Accounting vs. Bookkeeping

Definition:
Bookkeeping involves recording financial transactions, while accounting involves analyzing, interpreting, and summarizing those transactions.

Primary Focus:
Bookkeeping focuses on the day-to-day recording of financial transactions, such as sales, purchases, and receipts. Accounting focuses on interpreting financial information to make strategic business decisions.

Scope:
Bookkeeping is a subset of accounting and primarily deals with the recording of financial transactions. Accounting encompasses a wider range of activities, including financial analysis, budgeting, and forecasting.

Qualifications:
Bookkeepers typically have a basic understanding of accounting principles and may hold a certificate or associate's degree in bookkeeping. Accountants usually hold a bachelor's degree in accounting or a related field and may be certified as a CPA.

Responsibilities:
Bookkeepers are responsible for maintaining accurate financial records, reconciling accounts, and preparing financial statements. Accountants are responsible for analyzing financial data, preparing tax returns, and providing financial advice to businesses.

Software Usage:
Bookkeepers often use accounting software to record transactions and generate basic financial reports. Accountants use more advanced software to analyze data, create forecasts, and generate comprehensive financial reports.
In conclusion, while bookkeeping and accounting are closely related, they serve different purposes within a business. Bookkeeping is more focused on recording transactions, while accounting involves interpreting and analyzing that information to help businesses make informed decisions. Both roles are essential for the financial health and success of a business.