accounts and bookkeeping

Bookkeeping involves the systematic recording of daily financial transactions. This includes tasks like tracking sales, purchases, receipts, and payments. It ensures that every financial activity is properly documented and organized, providing an accurate and up-to-date record of a company’s financial activities. Bookkeeping is essential for creating financial statements and helps businesses maintain order in their financial records Accounts, on the other hand, refers to the broader management and organization of financial data, including the classification of transactions, preparation of financial reports, and ensuring compliance with accounting standards. Accounting takes the data from bookkeeping and uses it to prepare financial statements like the balance sheet, income statement, and cash flow statement. Accounts also involve managing liabilities, assets, equity, and revenue, helping business owners make informed financial decisions