Accounting versus Bookkeeping
The misconception is that accounting and book-keeping are the same. But they are not!
What is book-keeping?
It is the process of financial records tracking, especially an entity’s income and expenses. This dates way back to a time where technology was not available and finances were recorded and tracked via paper.
What is accounting?
Accounting is the big process of financial records interpretation so that business owners are able to make strategic business decisions based on your business’s numbers.
Both bookkeeping and accounting are very important to the every company’s development. It is even more essential for a startup to keep up their records in good order.
Investors and shareholders will require a formal submission of the company’s financial reports on a regular basis. This will assist in their investment decisions and for the company to be in line with the shareholders’ interests.