| Aspect | Bookkeeping | Accounting |
|---|---|---|
| Definition | Recording daily financial transactions | Analyzing, interpreting, and summarizing financial data |
| Primary Purpose | Maintain accurate records | Provide insights, reports, financial statements |
| Focus Area | Invoices, receipts, expenses | Profitability, planning, audit |
| Nature of Work | Clerical & administrative | Analytical & strategic |
| Skills Required | Basic knowledge of transactions | Accounting standards, taxation, analysis |
| Tools Used | Ledgers, journals, Tally, Zoho Books | Financial statements, tax software, ERP |
| Involves | Data entry, reconciliation | Profit & Loss, Balance Sheet, Tax Returns |
| Compliance | Not compliance-focused | Ensures compliance with tax laws |
| Output | Trial balance, daybooks, reconciliations | Financial reports, tax filings, audits |
| Who Performs It | Bookkeeper, clerk | Accountant, CA, CPA |
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