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Bookkeeping refers to process of systematic recording financial data of an individual, business, or organization. Typically, bookkeeping will focus on the system of tracking income and expenses of cash flow. In most cases, bookkeeping usually works best for simple and non-complicated business transaction. Two common methods of bookkeeping are:
Single Account Bookkeeping: Singe account bookkeeping refers to process of recording income and expense in a cash record book.
Double Entry Bookkeeping System: This system is the basis of standard system used by to record financial transaction.
On the other hands, financial accounting shows the bigger picture of the business. Financial accounting does not only keep track of data and transaction’s history, it can also provide information for decision maker to analyze the results of the business. Generally, a financial account will prepare financial statements and reports help directing the business. Some examples of such documents are Income Statement, Balance Sheet, Aged Payables, Aged Receivables, standard P & L, etc.
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