What Are The Differences Between Bookkeeping And Accounting?

Does your firm need accounting and bookkeeping services?

Accounting and Bookkeeping are two major financial functions that are extremely important for any business organization. In the simplest of simple terms, we can define bookkeeping as the recording of financial transactions whereas accounting gives you a clearer picture of interpreting, analysing, classifying, reporting and summarizing of financial data. For laymen bookkeeping and accounting can appear to be the same because both deal with the financial data with basic accounting knowledge, classify and generate reports using the financial transactions. At the same time, bookkeeping and accounting are inherently different and have their own set of characteristics and advantages.

Let’s understand the functional difference between bookkeeping and accounting.

Bookkeeping is the process of recording, storing, retrieving financial transactions of a small, medium or large company, non-profit organization, an individual person etc. Through bookkeeping the status of the company can be identified if it is generating profits or losses. But the complexity of bookkeeping depends on the number of transactions recorded daily, weekly and monthly along with the size of the business.

Bookkeeping is comprised of:

• Recording of financial transactions
• Producing invoices
• Posting debits and credits
• Completing payroll
• Maintaining and balancing general ledgers, subsidiaries and accounts

Accounting is a much higher-level process that uses financial data that are compiled by bookkeepers to produce financial models. Accounting is more subjective, in-depth and largely transactional than bookkeeping.

Accounting is comprised of:

• Reviewing company’s financial statements
• Analysing costs of operations
• Preparing adjusting entries
• Completing income tax returns
• Aiding the impact of financial decisions

Accounting and Bookkeeping are two vastly different financial functionalities despite the similarities and blurring of roles. Now that you understand both of these functionalities, it’s time to decide which one is right for your business and who can be really helpful for your business.

Why choose Osservi as your accounting or bookkeeping partner?

Osservi is an Ireland based accounting and booking firm that offers a professional and personalized approach to your small, mid-sized and enterprise-level businesses by setting up your accounts; providing support and maintenance along with accounting and consultancy. By outsourcing or hiring Osservi for bookkeeping or accounting services, you give your business so much in order to grow, prosper and succeed.

Our team at Osservi consists of trained and highly qualified professionals who quickly adapt to customer’s specified software and ensure quick turnaround time.

An accounting and bookkeeping service provider like Osservi allows the company to give you the advantage of minimized exposure to financial risk with maximized efficiency. Our highly qualified and trained team of professionals at Osservi can quickly adapt to customer’s specified software and ensure quick turnaround time.

Osservi is considered one of the best bookkeeping and accounting firms in Ireland which can accelerate your company’s growth; enhance your skills and expertise; improve credibility; helps to reduce operational costs and capital investments. For any inquires related to accounting or bookkeeping feel free to contact us as we will be happy to help you set up your books according to the process described above. This can be used as a catalyst to make better decisions for your small or medium business to increase profits.

Feel free to write to us at info@osservi.ie or contact us on +353 1800 938 796 to know how we help start-ups, mid-sized businesses and enterprises with bookkeeping services.