Some of the differences between book-keeping and accounting are as follows:

Book-Keeping:

1. Book-keeping means and includes:

(i) Identification of the transactions from the various business transactions, which are having financial character;

(ii) Measurement of those transactions in terms of money;

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(iii) Recording those transactions in the books of original entry;

(iv) Classification of the transactions keeping in view the respective ledger accounts.

2. Book-keeping is a primary stage in accounting. In other words, we can say that book-keeping is the basis of accounting.

3. The main aim of book-keeping is to record business transactions in a systematic manner.

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4. A higher and special knowledge is not required for book-keeper.

5. An analytical skill is not required in the process of book-keeping.

6. Usually, junior staff in the accounting department performs the work of book-keeping.

7. Book-keeping has no branch.

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Accounting:

1. Accounting means and includes:

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(i) Summarisation of the classified transactions in the shape of final accounts;

(ii) Analysis and interpretation of the results disclosed by final accounts and drawing meaningful conclusions;

(iii) Communicating the required information to all the concerned parties.

2. Accounting is a secondary stage. In other words, we can say that accounting starts where work of book-keeping ends.

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3. The main aim of accounting is to analyse and interpret the results disclosed by final accounts and communicate relevant information to the intended users.

4. As compared to a book-keeper, a higher and special knowledge is required for the process of accounting.

5. An analytical skill is required in the process of accounting.

6. The work of accounting is performed by the senior staff in the accounting department.

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7. Accounting has several branches, viz. financial accounting, cost accounting, management accounting, social responsibility accounting etc..

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