Basis of comparison Bookkeeping Accounting
It is a process of identifying, It is a systematic and scientific process
Definition measuring and recording of summarizing, interpreting financial
financial transactions transaction which was classified in the ledger account.
Decision Management cannot take Management takes decision based on making decision based on the data relevant information provided by provided by bookkeeping. accounting.
Objectives To keep record of financial To measure financial situation and transaction in a proper and established communication between a systematic propose. firm and its stakeholders.
Preparation of Financial statements are not Financial statements are prepared financial prepared as a part of this process. during the accounting process.
statement
Analysis Bookkeeping does not analyze It does analyze and interpret financial
financial transactions transactions with the help of bookkeeping.
Types There are two types of There are more than ten types of bookkeeping i.e. single entry accounting such as cost accounting, bookkeeping and double entry financial accounting, managerial bookkeeping. accounting etc.
Skill and It does not require specific skill It requires specific skill and knowledge
Knowledge and knowledge to prepare due to its analytical and complex bookkeeping. nature.
Interdependency It can be prepared without the It cannot be prepared without the absence of accounting, hence it absence of bookkeeping, hence it is independent. depends on bookkeeping.
Even though both have some similarities and differences but as a matter of fact a both system plays crucial role while proving relevant financial information to various users for appropriate decision making process that ensures sustainable growth of business firm.
