Book keeping usually involves only the recording of business transactions (transactions) and is therefore, just one part of the accounting process. Accounting on the other hand, involves the entire accounting process, i.e. identification, measurement, recording, and communication. Now-a-days, much of the book keeping function is performed by the computer and other machines.

Book keeping usually involves only the recording of business transactions (transactions) and is therefore, just one part of the accounting process. Accounting on the other hand, involves the entire accounting process, i.e. identification, measurement, recording, and communication. Now-a-days, much of the book keeping function is performed by the computer and other machines.

Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their company.

Bookkeepers are responsible for maintaining the "business checkbook", much like a personal checkbook. They record routine money transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement journal." They also process payroll. At month end they transfer or "post" the "journal" totals to the "general ledger" in preparation for financial statements prepared by the accountant.

Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company's products or services.

Bookkeeping is the process of recording the business transactions and the relations between the transactions. The process of bookkeeping is mainly mechanical and does not require any analysis. Instead of the analyzing the bookkeeping relies only on the recording of the information. In the past times the records were kept in a book and this is why this financial tool is called bookkeeping. In the modern days the books got substituted with modern bookkeeping software which run on personal computers. These kind of software is very sophisticated and it can tremendously help the job of the bookkeeper.

Basically the process of bookkeeping is consisting from the recording of the incoming transactions ( received payments in form of money or cheques from customers, etc. ) and the recording of the outgoing transactions ( paying for specific bills in the correct time, etc. ).

There are two basic kinds of bookkeeping : single entry bookkeeping and double entry bookkeeping. In the case of the single entry bookkeeping we can find each transaction carried to the debit column or the credit column. On the contrary, in the case of double entry bookkeeping we can find two entries for each transactions carried to the ledger. One entry is carried to the credit side and the other to the debit side. This is done in the way that the two entries can be checked.

The process of bookkeeping is mainly mechanical and does not require any analysis. Instead of the analyzing the bookkeeping relies only on the recording of the information. In the past times the records were kept in a book and this is why this financial tool is called bookkeeping. In the modern days the books got substituted with modern bookkeeping software which run on personal computers. These kind of software is very sophisticated and it can tremendously help the job of the bookkeeper. Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company's products or services.