Are Accounting and Bookkeeping the Same?

Are Accounting and Bookkeeping the Same

How accounting and bookkeeping differ from each other is a usual concern. Bookkeeping is an essential part of the more prominent subject of accounting.
Basically, a bookkeeper is an individual who is mainly in charge of the fundamental functions of the accounting unit. The bookkeeper develops financial transactions and financial documents that give an outline of those deals. The bookkeeper needs to document or produce data from a wide range of source documents of these actions, for instance, statements to consumers, cash receipts, as well as distributor billings.

Ensuring the accuracy of the accounting files is also one of the responsibilities of the bookkeepers. The accounting records asks for significant focus to the submitting of the accounting files, constant recording of relevant information, and the analysis of accounts to make sure that they are accurate. Bookkeeping deals are mechanical, which means that the bookkeeper adheres to an authorised series of steps repeatedly to record a regular task.

Main responsibilities of the bookkeeper:

Cash receipts and invoicing tasks

  • Issue statements to clients
  • Guarantee that receivables are claimed punctually
  • Keep records of cash receipts as well as making bank down payments
  • Perform bank reconciliation every month
  • Guarantee that receivables are claimed punctually
  • Keep records of cash receipts as well as making bank down payments
  • Perform bank reconciliation every month

Documenting as well as cash payment tasks

  • Settle distributor invoices on time
  • Take all appropriate rebates on distributor invoices
  • Settle any financial debt as the time for settlement comes
  • Track level of business debts and compliance with debt agreement
  • Financial statements
  • Perform reconciliations of all accounts every month to make sure that the amounts are correct
  • Issue and provide financial statements (Also see What is Balance Sheet and Statement of Affairs?)
  • Inform executives if any problems showed up in the financial statements
  • Collect data for the analysis at the end of the year

The bookkeeper is not commonly a contemplated component of the senior executive team. They are excluded because their position is administrative. The bookkeeper is not being asked formally to run the business actively, but more to arrange its result systematically (Also see 10 Concerns You Need To Address Prior To Beginning Your Organisation).

Some organisations offer their bookkeepers titles that surpass their real job duties, for example, “accounts executives”, or “auditor”. If there is any problem regarding the useful title of a person, the most significant evaluation is whether the individual is only and singly in charge of all accounting tasks. If this is the case, the individual is a bookkeeper.

Main responsibilities of the accountant.

Accounting includes the tasks below:

  • Making the graphs of accounts.
  • Organising the general ledger using double entries (Also see The Difference Between Single and Double Entry System).
  • Calculating the financial statements.
  • Giving personalised executive records to draw people’s attention to certain problems, for example, by using relevant financial ratios.
  • Modifying the grouping or provide evidence of purchases to reach particular accounting standards.
  • Generating a budget and make a comparison with the real outcomes.
  • Organising tax returns from the commercial info.
  • Producing a series of controls that the financial structure works within.
  • Creating a record maintaining, storing, and data protection system.

Commonly, at least one competent accountant will be in charge of the accounting functions of an average to large companies. The accounting professional will then build up the system that are adhered to by a large group of bookkeepers or staffs.

All in all, the difference between bookkeeping and accounting is that bookkeeping pays attention to repeated business deals, therefore is a part of the more extensive set of activities which can be covered through accounting.

Some substantial differences between the bookkeeper and accounting professional can be seen too. The bookkeeper function is broad, with someone usually taking care of each of the accounting deals for a small company. The bookkeeper usually has a lot of experience, but they are most probably lack of official accounting education. On the other hand, getting an accounting service in Singapore have higher chances to ensures the professional accountants do their tasks specifically in a particular field, for example, the general ledger, and probably have obtained formal education in the accounting part.

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