distinguish between accounting and bookkeeping

Accounting and bookkeeping are both essential aspects of financial management, but they serve different purposes. Bookkeeping refers to the systematic recording of financial transactions, including sales, purchases, receipts, and payments. It ensures that all financial data is accurately logged and categorized. Accounting, on the other hand, involves analyzing, interpreting, and summarizing this financial data to create financial reports, assess business performance, and make strategic decisions. While bookkeeping focuses on data entry, accounting includes higher-level tasks like budgeting, tax preparation, and financial analysis.