What is the difference between Accounting vs. bookkeeping?

Accounting and bookkeeping are closely related fields within the realm of financial management, but they serve distinct functions:

Bookkeeping:

Bookkeeping is primarily concerned with the systematic recording of financial transactions.
It involves tasks such as recording financial data, maintaining ledgers, and reconciling accounts.
Bookkeepers are responsible for accurately recording financial transactions on a day-to-day basis.
The main focus of bookkeeping is to ensure that financial data is organized and accurate, providing a foundation for further analysis and reporting.
Accounting:

Accounting encompasses a broader range of activities, including analyzing, interpreting, and summarizing financial data.
It involves tasks such as preparing financial statements, analyzing financial performance, and providing financial insights to stakeholders.
Accountants are responsible for interpreting financial data, identifying trends, and providing insights to help businesses make informed decisions.
While bookkeeping focuses on recording transactions, accounting focuses on the interpretation and analysis of financial information to support decision-making.
In summary, bookkeeping is more transactional and focuses on the accurate recording of financial data, while accounting involves a deeper analysis of financial information to provide insights and support decision-making. Bookkeeping is a subset of accounting and serves as the foundation upon which accounting functions are built.