Difference Between Bookkeeping and Accounting:

The terms "bookkeeping" and "accounting" do not have the same meaning. Accounting is much wider than bookkeeping. The difference between bookkeeping and accounting arises due to the following reasons:

Points of difference	Bookkeeping	Accounting
1. Area of work	Bookkeeping involves the recording of business transactions in a prescribed manner	Accounting in addition to recording of business transactions, also includes other matter such as making adjustments, preparation of income statement, balance sheet and interpreting results thereof.
2. Knowledge and skill	No professional knowledge and skill is required for a bookkeeper.	Professional knowledge and skill is prerequisite for an accountant.
3. Scope	Bookkeeping is an initial stage of accounting therefore, the scope of bookkeeping is limited. It provides the primary information about the business.	The scope of accounting is wider.
4. Nature of job	Much of the work of a bookkeeper is clerical in nature and the job is is mainly preliminary.	The work of accountant is technical in nature. Modern accounting serves as eyes and ears to the management. It has become the foundation on which the whole structure of commerce rests and without which no business can be run at all.
5. Information	It provides the primary information to the business.	It provides information about the final results of the business
6. Financial decisions	Financial statements are not prepared from bookkeeping records.	Financial statements are prepared from accounting records.
7. Business conditions	It does not give the complete picture of the financial condition of the business unit.	It gives the complete picture of financial condition of the business unit.