difference between accounting and booking

Accounting and bookkeeping are both vital components of financial management, but they serve different purposes. Bookkeeping involves the daily process of recording and organizing financial transactions, ensuring that all income, expenses, and payments are properly documented. It is focused on maintaining accurate records and preparing the foundation for financial reporting. Accounting, on the other hand, takes the data recorded in bookkeeping and interprets it to create financial statements, analyze performance, provide strategic insights, and ensure tax compliance. While bookkeeping is routine and transactional, accounting is more analytical and forward-looking, helping businesses make informed decisions