Difference Between Bookkeeping and Accounting

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 24, 2023

If your knowledge of accounting is slim, you might be confused about the differences between bookkeeping and accounting.

Bookkeeping is a small part of accounting. It represents only the recording phase of an accounting system. Therefore, we can say that the process of accounting begins where the process of bookkeeping ends.

Accounting not only includes maintaining accounting records but also the preparation of the following statements:

  • Trading and profit & loss account

The main differences between bookkeeping and accounting are summarized in the table below.

Difference Between Bookkeeping and Accounting

Difference Between Bookkeeping and Accounting FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.