We often confuse the meaning of bookkeeping and accounting. In reality, these two terms are similar but one is broader than the other.
Keeping things organized in the books is what business bookkeeping is really about. It is concerned with recording the activities that involve the use of money in a business, whether we have it, we spend it, we owe it, or it is owed to us. A deeper analysis of this information is what accounting does best.
Accounting is a much broader concept which implies not only business bookkeeping, but also the analysis and interpretation of information supplied by the books and financial statements, information that has been generated through the art of business bookkeeping, given that it records economic events.
With the creation of software for accounting, business bookkeeping has become obsolete, since the system is responsible for delivering complete information that is ready to be interpreted and analyzed.
Business Bookkeeping has been relegated in importance by senior executives or big companies because they rely more on Accounting to make their financial decisions. The recording of transactions in books is always important, but accounting makes it simpler for managers to make financially educated decisions.
Accounting allows companies to create elaborate analysis of transaction and identify negative patterns in their operations in order to strategically solve those issues.
You may ask yourself then, what is the purpose of business bookkeeping? First remember that bookkeeping is to record, develop, prepare, and organize all transactions made by a business in order for it to have them available when needed.
Bookkeeping helps accounting through the recording of business transactions in a chronological manner. Bookkeeping allow us to capture a company's events and prints them in book or an optical device. It is through Business bookkeeping that we mange to classify, organize, and register the operations of a company. - 16890
Keeping things organized in the books is what business bookkeeping is really about. It is concerned with recording the activities that involve the use of money in a business, whether we have it, we spend it, we owe it, or it is owed to us. A deeper analysis of this information is what accounting does best.
Accounting is a much broader concept which implies not only business bookkeeping, but also the analysis and interpretation of information supplied by the books and financial statements, information that has been generated through the art of business bookkeeping, given that it records economic events.
With the creation of software for accounting, business bookkeeping has become obsolete, since the system is responsible for delivering complete information that is ready to be interpreted and analyzed.
Business Bookkeeping has been relegated in importance by senior executives or big companies because they rely more on Accounting to make their financial decisions. The recording of transactions in books is always important, but accounting makes it simpler for managers to make financially educated decisions.
Accounting allows companies to create elaborate analysis of transaction and identify negative patterns in their operations in order to strategically solve those issues.
You may ask yourself then, what is the purpose of business bookkeeping? First remember that bookkeeping is to record, develop, prepare, and organize all transactions made by a business in order for it to have them available when needed.
Bookkeeping helps accounting through the recording of business transactions in a chronological manner. Bookkeeping allow us to capture a company's events and prints them in book or an optical device. It is through Business bookkeeping that we mange to classify, organize, and register the operations of a company. - 16890
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