accounting and bookkeeping

Accounting and bookkeeping are essential financial practices that help businesses manage their finances effectively. Bookkeeping refers to the process of recording daily financial transactions, such as sales, purchases, payments, and receipts. It ensures that all financial data is accurately documented and organized for easy access. Bookkeeping is the foundation for maintaining accurate financial records and preparing for financial statements Accounting, on the other hand, is a broader and more complex process that involves interpreting, classifying, analyzing, and summarizing financial data. Accountants use the information from bookkeeping to prepare financial statements (such as the income statement, balance sheet, and cash flow statement), analyze the financial performance of a business, and ensure compliance with tax regulations