Accounting and Business Bookkeeping are frequently used interchangeably when in fact bookkeeping is only a part of accounting.

It is understood that business bookkeeping is the processing of registering transactions in the books. It means taking the numbers that represent all the transactions involved in the daily activities of a business: cash, accounts receivable, accounts payable and taxes paid. Other more complex recording of assets and liabilities are done through business accounting.

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 allows companies to create elaborate analysis of transaction and identify negative patterns in their operations in order to strategically solve those issues.

You may ask yourself then, what is the purpose of business bookkeeping? First remember that bookkeeping is to record, develop, prepare, and organize all transactions made by a business in order for it to have them available when needed.

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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