The Difference Between Bookkeeping and Accounting

Our team at JAYA Financial has been working in finance and accounting for many years, and we encounter many of the same misconceptions again and again. In our experience, one of the most common misconceptions about our work is that bookkeeping and accounting are the same thing.

Although bookkeeping and accounting are two closely related fields, they do have some important distinguishing factors. Here’s a quick breakdown of each profession:

• Bookkeeping – Both bookkeeping and accounting professionals look at financial information, but they focus on different elements. Bookkeeping is more focused on recording and organizing financial data. Bookkeepers will keep track of things like payroll, insurance withholding, tax withholding, and similar data, making sure your workers get paid properly, but not really making any predictions or plans.
• Accounting – Accounting professionals, on the other hand, are more focused on interpreting financial data. Accountants look at the records bookkeepers create and analyze these records to find patterns and trends. Then, they present their findings to their clients in a variety of ways, explaining what the information means and how it affects their plans. Our accountants will also use our analysis to identify investment opportunities and other steps you can take to grow your wealth (or eliminate debt) over time.

If you have questions about bookkeeping and accounting, we encourage you to give us a call to speak to our team members directly. We will be happy to provide the answers you are looking for, and we look forward to hearing from you soon.