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What’s the Difference

Bookkeeping and accounting are both essential business functions. But there is an important distinction. Bookkeeping refers mainly to the record-keeping aspects of accounting. It involves preparing source documents for all transactions, operations, and other financial events of the business. The responsibility of the accounting function is interpreting, classifying, analysing, reporting and summarising financial data.  It is from this that accounts are prepared, which usually comprise the Profit & Loss account and Balance Sheet.