When we talk about a company and its accounts, one thing is sure, we need a systematic record of data so that whenever we require a quick glance of the accounts related to a particular date, the data is readily available and we don’t have to struggle with the same.

Now, most of us have the question of what is accounting and bookkeeping?

Some of us may even try to differentiate between them and look for what’s the better option and why? So, let’s not wait and find out the answers to these questions and choose the best for ourselves.

Let’s first try to understand what is bookkeeping?

Bookkeeping refers to the process that records a company’s financial transactions in an organized form on a daily basis. It is the subset of accounting.

It has a huge list of features, the major ones include recording financial transactions, posting debits and credits, producing invoices, preparing financial statements, completing of payroll, and so on. Moving further, bookkeeping holds a lot of advantages. Some of those include keeping track of the cash flow, it acts as legal evidence, helping in creating financial statements at the end of the financial year, helping notice errors and frauds, and many more come under the list. There are two methods of Bookkeeping:

• Single Entry System of Bookkeeping
• Double Entry System of Bookkeeping
  
  

Now that we know what bookkeeping is, let’s now try to have a quick glance and understand what exactly accounting is so that in the end we can choose the better one!

Accounting basically refers to the system of summarising and recording the business, and financial transactions and also analyzing, verifying and reporting the results. It is the language of business. Some of the major features of accounting include recording financial transactions, classifying the transactions and summarising them, interpreting the results, and so on. Looking forward to the long list of advantages, the top ones are that it allows you to maintain business records, prepare financial statements, compare results, make better decisions for an optimistic future of the firm, act as evidence in legal matters, help in the taxation process, valuation of the business and many more!