Businesses have had a typical year last 2020. Most businesses are trying to fix their mark in the industry this 2021. As they spend time in reorganizing their businesses it is also important to make sure that their financial backups are also organized efficiently.
In today’s post we are about to know the difference between bookkeeping and accounting what do they really mean.
Accounting is making track of all the financial records of the business and organization. The process of account keeping summarizes every report and data collected through bookkeeping.
Bookkeeping is keeping track of all the transactions and income of a business. The track record involves every single transaction including the income and expenses of the organization.
Most businesses or organization misinterprets accounting with bookkeeping hence they fail their businesses, especially in finance. To be even more elaborate in knowing accounting and bookkeeping here are a few points.
Accounting is a practice of handling business accounts or any accounts attached to the organization, assets and perform consistent audits. This is done to ensure that the finance of the organization is maintained well.
This entire process by an experienced accountant who helps owners with the clear report of their organization’s revenue and customs department. The following are some of the important things that every accountant performs during the audit.
1. Consult and provide assistance on maintaining a healthy cash flow and improve profits.
2. Ensure timely payment and tax regulations.
3. Maintain clear track record and compilation of data according to the accounting laws and rules.
4. The foremost thing that an accountant insists is, the company should follow the updated government regulations and policies when it comes to financial fronts and maintain company standards.
Accounting turns out to be a nightmare if bookkeeping is not done right. That is why bookkeeping is also considered equally important apart from accounting. Bookkeeping includes crafting, structuring, and revising the system with every new information of the organization. The following are the things that is done while bookkeeping.
1. Constantly keep an eye on the expense records to ensure that it is compliance with the government guidelines and industry standards.
2. Maintain two individual accounts debit and credit and organize categories based on the expenses and transactions made.
3. Every single expense is recorded, and data entry is performed on each income and expense.
4. All the transaction and banking activities are maintained and approved by the bookkeeper.
Both these activities, bookkeeping and accounting is constantly maintained by most developed organization and hence they are free of all disputes which are caused due to overruling the government policies.
If you are dealing with restaurant business, keeping track record of your bills would be the toughest thing that could happen to you in your day-to-day chores. To avoid such discomfort, POS systems and billing software have evolved which reduces the pressure of the business owners.
Among most billing software and POS systems, ecBill is one of the leading billing software integrated with cloud that can store all your transaction details on cloud. This eventually gives access to your data from anywhere and at any time. If things can be that easy, why do you have to hesitate to have one for your business?
Through this post you must be very clear in knowing the difference between bookkeeping and accounting. If you have been misled all these days, hope this post might have helped you understanding them better. Make sure to maintain a proper track record of your transactions and get them handled by a genuine accountant.