distinguish between accounting and bookkeeping

Distinguishing between accounting and bookkeeping is essential for understanding the different roles they play in financial management. Bookkeeping involves the day-to-day recording of financial transactions, such as sales, purchases, and receipts. It ensures that all financial data is accurately entered and organized into ledgers. On the other hand, accounting involves a higher-level process that includes analyzing, interpreting, and reporting on financial data, such as preparing financial statements, managing tax filings, and making financial decisions. While bookkeeping is the foundation, accounting takes that data to make strategic business insights.