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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.
Nowadays we have available software that has made accounting work so easy that business bookkeeping has become a thing of the past. These new programs allow us to have information handy at any point in time and to analyze it.
Accounting is nowadays more important than business bookkeeping because it is more broadly used by people in management to make decisions. Business bookkeeping is an implied part of Accounting and therefore it is still important. However, it is accounting the most used tool that helps managers to make financial decisions.
Accounting has the potential to identify weaknesses and opportunities to develop strategies for one situation or another. It presents financial projections and the trends identified based on a company's economic reality.
You may be wondering then, what is the use of business bookkeeping? Keep in mind that bookkeeping's mandate is to record, develop, prepare and organize the information gather from a business daily activities, it puts them together so that we can later use them when we need them.
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.
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.
Nowadays we have available software that has made accounting work so easy that business bookkeeping has become a thing of the past. These new programs allow us to have information handy at any point in time and to analyze it.
Accounting is nowadays more important than business bookkeeping because it is more broadly used by people in management to make decisions. Business bookkeeping is an implied part of Accounting and therefore it is still important. However, it is accounting the most used tool that helps managers to make financial decisions.
Accounting has the potential to identify weaknesses and opportunities to develop strategies for one situation or another. It presents financial projections and the trends identified based on a company's economic reality.
You may be wondering then, what is the use of business bookkeeping? Keep in mind that bookkeeping's mandate is to record, develop, prepare and organize the information gather from a business daily activities, it puts them together so that we can later use them when we need them.
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.
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