Is accounting just bookkeeping, or is that a myth

[ray]

Is accounting just bookkeeping, or is that a common myth? I often hear people use these terms interchangeably, but I want to understand whether accounting involves more than just recording transactions and what additional roles it plays in business decision-making.

 

[maddy]

It is a myth bookkeeping is simply the registering of transactions whereas accounting is beyond that, analyzing of numbers, data interpretation, and assisting business to make wiser financial decisions.

 

[Olowricha]

It is a myth. Although accounting is based on bookkeeping, the two are different:

• Bookkeeping: Administrative; is concerned with documents of daily transactions and data input.
• Accounting: Strategic; is the interpretation, analysis and summarization of such data to give financial information and recommendations.

 

[Shane Warne]

The myth about accounting being about bookkeeping is that bookkeeping is the part of accounting that involves actual recording of financial transactions whilst accounting involves analysis, interpretation and reporting of financial transactions to assist businesses in making decisions, preparing tax returns, budgets and evaluating financial health and therefore accounting is a more extensive and more strategic field than bookkeeping.

 

[James Miller]

The idea that accounting is merely bookkeeping is a myth as bookkeeping involves recording the financial transactions whereas accounting involves the interpretation of these records, preparation of financial reports, trend advisory, financial decisions, and compliance is a wider and more strategic role in business.