What’s the difference between bookkeeping and accounting?

Bookkeepers handle the daily financial tasks like categorizing transactions, posting credits and debits, and running financial reports. Accountants take that information to provide financial predictions and guidance for a business.

They’re related terms but different when it comes to your business’ overall health. Bookkeeping entails the recording of daily transactions in a consistent manner (categorizing transactions, running reports, reconciling accounts, etc.), and it is essential to building a financially sound operation. Bookkeepers take care of day-to-day financials, like posting credits and debits, maintaining the general ledger, and completing payroll.

On the other hand, accounting is more high-level, and it uses the financial information managed/reported by a bookkeeper to generate financial models and guidance.