How to Differentiate Accounting From Bookkeeping

Save
Next Video:
Learning Basic Accounting Principles....5

The difference between accounting and bookkeeping is that bookkeeping is the recording of a financial transaction, while accounting is the system of putting transactions together into a report for the leaders of a business. Discover how accountants allow business owners to understand the financial perspective of an organization with information from an accounting professor in this free video on accounting.

Part of the Video Series: Accounting Careers & Information
Promoted By Zergnet

Comments

Video Transcript

Hi, my name is Shawn Jones the adjunct professsor here at RUC University. Today we're talking about the difference between accounting and bookkeeping. Basically, accounting is the entire process of being able to keep track of a company or organizations financial records. It includes the reporting function, recording of transactions, keeping track of history, payrolls, receivables, payables. Putting all those things together into a package that managers, leaders of various organizations and companies can have access to to understand where their business is at from a financial perspective. Bookkeeping is the specific recording of those transactions, so taking, for example, the recording of an invoice or the recording of a bill, and being able to put that information into a company's financial accounting system. So thus, bookkeeping is the recording of a transaction. Accounting is being able to put all of those transactions together into a report or data that is functional for leaders of organizations to be able to understand their reporting and what is going on within their business. For more information about this topic, please visit our website at argosy.edu. There you can find our phone number or an address to come and visit our Salt Lake City campus.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!