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Accounting Accounting is a wider concept and actually, it begins where Book Keeping ends. It
includes summarizing, interpreting and communicating the financial data to the users
of financial statements.

Accountancy Accountancy refers to systematic knowledge of the principles and the techniques

which are applied in Accounting.

Difference Between Bookkeeping and Accounting

Basis Bookkeeping Accounting

Scope Bookkeeping involves identifying, In addition to bookkeeping, Accounting also
measuring, recording & classifying includes summarizing, interpreting and
financial transactions in the ledger communicating the financial data to the users
accounts. of financial statements.

Objective The main aim is to maintain The main aim is to ascertain the profitability
systematic records of financial and financial position of the business.
transactions.

Stage It is a primary stage of accounting It is a second stage and begins where book-
keeping ends.

Nature of This job is in routine and repetitive in This job is analytical in nature.
job nature.

Level of Bookkeeping does not require special It requires specialized skill to analyze, so it is
skills skills. It is performed by Junior Staff. performed by senior staff.

Branches of Accounting

1. Financial Accounting:- It is that subfield/Branch of accounting which is
concerned with recording of business transactions of financial nature in a
systematic manner, to ascertain the profit or loss of the accounting period
and to present the financial position of the business.