Difference Between Book-Keeping and Accounting
| Bases of difference | Book-keeping | Accounting |
|---|---|---|
| 1. Meaning | It is an act of making routine records of financial transactions. | It is an act of summarizing, presenting and interpreting the financial information contained in the routine records. |
| 2. Nature | It is routine in nature as the recording of financial transactions is performed repetitively. | It is creative in nature as it needs judgement to present and interpret financial information. |
| 3. Purpose | Its main purpose is to make permanent records of financial transactions of a business. | Its main purpose is to ascertain the profit or loss and the financial position of the business. |
| 4. Whole or part | It is a part of accounting and is included in it. | It is a whole in itself and includes book-keeping in its fold. |
| 5. Maintain | It is maintained by a clerk called a book-keeper. | It is maintained by a qualified person called an accountant. |
| 6. Knowledge and Skills | It needs little knowledge and skill to perform it. | It needs specialized knowledge and skills to perform it. |
