Book keeping and accounting and accountancy
Book Keeping
Book-keeping is recording the business transaction of monetary aspects in books of accounts. It is mainly concerned with record keeping or maintenance of books of accounts. It includes identifying, measuring, recording and classifying functions of accounting. The book-keeping function is routine and clerical in nature and can be performed by a person having limited knowledge of accounting.
Accounting
Accounting is considered as a system which collects and processes financial information of a business. Accounting starts where bookkeeping ends. It includes summarising, analysing, interpreting and communicating functions of accounting.
Accountancy
Accountancy refers to a systematic knowledge of accounting, concerned with the principles and techniques which are applied in accounting. Accountancy is collection of theory and practices of accounting.
| Basis | Book keeping | Accounting |
| Objective | To maintain systematic records of transactions of financial nature | To ascertain the net results and the financial position of the business |
| Phase | It is the recording phase of an accounting system | It is the summarizing phase of an accounting system |
| Stage | It is a primary stage and basis for accounting | It is secondary stage which begins where the book-keeping process ends. |
| Skills required | It is routine in nature and does not require any special skill or knowledge | It is analytical in nature and require special skill or knowledge |
| Who performs | It is done by junior staff called book keepers | It is done by senior staff called accountants |