According to Accounting: “Accounting is the process of recording, classifying and summarizing financial transactions. It provides a clear picture of the financial health of your organization and its performance, which can serve as a catalyst for resource management and strategic growth.”

 There are several types of accounting. Four of the most common types of accounting include in:

+ Financial accounting

+ Cost accounting

+ Managerial accounting

+ Tax accounting

What is bookkeeping in accounting?

Bookkeeping is the process of recording the financial transactions of a company into the accounts in an order on a regular basis. Bookkeeping is an essential part of the accounting process. With the accurate bookkeeping, you can track all information on its books to make financing decisions or measure business performance.

The difference between bookkeeping and accounting

According to kpi.com: “Bookkeepers record and organize financial transactions, while accountants analyze this data and prepare financial statements. Bookkeepers focus on the day-to-day financial activities, while accountants take a more analytical and strategic role, interpreting financial information for decision-making.”

There are some methods of bookkeeping: single-entry bookkeeping and double-entry bookkeeping.

+ Single-entry bookkeeping is a simple and straightforward method in which each transaction is recorded as an entry in your book.

+ Double-entry bookkeeping is more robust. This method follows the principle that for every business transaction, an entry is recorded in at least two accounts as a debit and credits.