Bookkeeping and Accounting

"Accounting is the practice of keeping track of a company's financial activities. Summarising, analyzing, and reporting these transactions to oversight authorities, regulators, and tax collection entities are part of the accounting process."

Bookkeeping is the process of keeping track of all a company's financial transactions. The bookkeeper's books are used in the accounting process to generate the end-of-year accounting statements and accounts.

When most people consider the differences between bookkeeping and accounting, they find it difficult to make a clear distinction. While bookkeepers and accountants have similar objectives, they assist your company at various points of the financial cycle.

Bookkeeping is involved with recording financial transactions and is more transactional and administrative. Accounting is more subjective, providing insights into your company's financial health based on accounting data.

Table of Contents
  1. What's the Difference b/w Bookkeeping and Accounting?
  2. Why Choose Bookkeeping?
  3. Why Choose Accountancy?
  4. Bookkeeping and accounting courses
  5. Accounting Courses
  6. Bookkeeping Courses
  7. What qualification is needed to become a bookkeeper or accountant?
  8. Study the right accounting qualifications

What is the Difference between Bookkeeping and Accounting?

What's the Difference b/w Bookkeeping and Accounting ?

To the uneducated eye, bookkeeping and accounting may appear to be the same job. Both accounting and bookkeeping deal with financial data, necessitate basic accounting knowledge and use financial transactions to classify and generate reports. At the same time, both of these techniques are fundamentally different and offer distinct benefits.

As bookkeeping is the initial step in the accounting process, a bookkeeper's and an accountant's duties frequently overlap. Accounting is concerned with analyzing and presenting financial data, whereas bookkeeping involves recording and organizing financial data. Both offer excellent professional choices; it's just a matter of deciding which one is right for you.

A bookkeeper handles a company's financial activities, such as paying bills and creating invoices. With less emphasis on interpretation, the main focus is on recording precise and full figures. Your books will be worked on daily, weekly, fortnightly, or monthly by a bookkeeper.

Interpreting, classifying, analyzing, reporting, and summarising financial data are all responsibilities of an accountant. An accountant will add to the bookkeeper's financial data by performing further financial analysis on the records. The accountant would typically work in less frequent intervals, such as quarterly VAT reports or annual accounts. They may sometimes be involved in more specialized assignments, such as working on a business plan or cash flow prediction. An accountant is more likely to provide financial advice, direction, and help.

Bookkeepers may begin their careers by working for a small business to gather experience before returning to school to pursue an accounting or finance degree.

If you want to work as an accountant, you might consider becoming a certified public accountant (CPA), which has its exam. Many accountants aspire to achieve this accreditation. You must have 150 hours of postsecondary education, or the equivalent of a bachelor's degree in accounting, plus 30 hours of graduate work.

BOOKKEEPING

ACCOUNTING

Objective

Keep the record of all financial transactions

To gauge the financial situation and communicate to the company.

Skills Required

Numerical accuracy, analytical mind, computer and software skills.

It requires analytical and decision making skills

Types

Single entry and double entry bookkeeping

Preparation of a company's budgets and plan loan proposals

Certification

Bookkeepers require knowledge about financial topics.

Accountant with sufficient experience obtain the title of Certified Public Accountant.



Why Choose Bookkeeping?

A company's bookkeeping skills are priceless. A bookkeeper will keep accurate records of money moving in and out of business and do activities such as managing day-to-day cash flow, filing year-end tax returns, and assisting in the smooth operation of the finances. As a skilled bookkeeper, you can work in a finance department or work for yourself. The following are some of the arguments in favour of choosing bookkeeping:

  • It offers affordable entry routes and the ability to become qualified in a short space of time.
  • By completing the bookkeeping courses, one can Increase earning potential and become an AAT bookkeeping member.

Why Choose Accountancy?

An accountant takes on a broader set of responsibilities and focuses on the larger finance picture, analyzing data from bookkeepers to conduct audits, creating financial statements, and estimating future business needs.

  • Every business around the world needs an accountant, so accounting skills will always be in demand.
  • After completing the accounting courses, one can expect to earn an average salary of around £23,000 or more.

Bookkeeping and accounting courses:

Accounting Courses:

  1. AAT Foundation (Certificate in accounting)
  2. AAT Foundation( Diploma in Accounting & Business)
  3. AAT Advanced (Diploma in Accounting)
  4. AAT Professional (Diploma in Accounting)

Employers value their talents and experience if they study an AAT accounting qualification. Some accounting qualifications lead to AAT professional membership and can be used as a stepping stone to university, chartered accountancy, or being your own boss.

Bookkeeping Courses:

  1. AAT Access (Award in Bookkeeping)
  2. AAT Access (Award in Accounting Software)
  3. AAT Foundation (Certificate in Bookkeeping)
  4. AAT Advanced ( Certificate in Bookkeeping)

Employers worldwide recognize AAT bookkeeping qualifications, which provide training for a wide range of bookkeeping professions. They can help students become AAT bookkeeping members while also allowing them to work for them.


What qualification is needed to become a bookkeeper or accountant?

Bookkeeping does not necessitate any specific qualifications or degrees. The majority of bookkeeping credentials are at the diploma or certificate level. Many institutes and groups offer online courses.

The Institute of Certified Bookkeepers (ICB) is the world's largest bookkeeping organization, with recognized providers offering certificate and diploma programmes.

The Association of Accounting Technicians (AAT) offers various bookkeeping credentials, the highest of which allows the bookkeeper to use the letters AATQB after their name. After you've reached that level, you can seek to become an AAT licenced bookkeeper, enabling you to provide services.

Study the right accounting qualifications

The AAT qualification is typically the minimum level expected of an accountant, but to ultimately become a chartered accountant, you'll have to progress to the ACCA, ACA or CIMA qualifications.

Although many accountants hold a university degree, it's often desirable rather than essential. Even if it is a prerequisite for a role, the degree can usually be in any subject.

So, while maths and economics at A-level followed by an accounting degree may be advantageous if you didn't go down this focused route, you'd still be able to get the qualifications you need - as professional bodies provide courses for students and workers at all levels.

Various finance qualifications are available to those interested in accounting careers, which can be confusing when searching for job opportunities.

For a good starting point, the most popular accountant qualifications include:

  • AAT (Association of Accounting Technicians) accounting courses - made up of four qualifications across three levels (Levels 2-4), combine industry knowledge and practical work skills.
  • ACCA (Association of Chartered Certified Accountants) qualifications comprise two levels: Fundamentals and Professionals. The modules cover a variety of topics, from corporate and business law to audit and assurance.
  • ICAEW (Institute of Chartered Accountants in England and Wales) chartered accountant status - also referred to as the ACA, this qualification consists of 450 days of practical work experience and the completion of 15 exam modules.
  • CIMA (Chartered Institute of Management Accountants) business finance award - oversees the widely recognized CGMA (Chartered Global Management Accountant), which requires you to have already gained the postgraduate-level CIMA Certificate in Business Accounting (Cert BA).

Many accountancy firms accept qualifications from any board, but if you have a definite career path in mind, it's worth looking into the preferred qualifications of that specialism.

To sum up, bookkeeping involves recording data and financial information, while accounting involves analyzing, classifying, and interpreting this data. Because of accounting's analytical and complex nature, accountants require more formal education and training than bookkeepers.