Bookkeeping vs. Accounting: What really is the difference?

If you’ve ever wondered what the difference between bookkeeping and accounting is, you’re not alone. In fact, online searches for the same question have increased by 71% in the past month!

Robbie Bryant, Head of Education and Development at Open Study College, a leading provider of distance learning courses, has explained the differences and outlined what you can expect from each career path.

What is bookkeeping?

“Bookkeeping is the process of recording and organising the daily transactions of a business. It includes documenting sales, purchases, payments, and receipts. The main goal of the job is to ensure accurate and up-to-date financial records.”

How do I get into a career in bookkeeping?

“To start a career in bookkeeping Indeed suggests obtaining relevant qualifications in the field. Bookkeeping courses get you equipped with financial record-keeping skills and using bookkeeping software. Some people also start with entry-level positions such as ‘Accounts Assistant’ or ‘Junior Bookkeeper to gain practical experience, but gaining certification through the AAT, ICB, or IAB will show future employers your initiative and commitment to the field. The average UK salary for a bookkeeper is currently £26,643”.

What is accounting?

“Accounting is the process of analysing, summarising, interpreting, and reporting financial data based on information provided by bookkeeping. It involves preparing financial statements, managing taxes, and providing insights into the financial health of a business. The average UK salary for an accountant is currently £36,768”.

How do I get into a career in accounting?

“To begin your career in accounting, you’ll need an AAT qualification. For those wanting to progress further, you can complete more advanced qualifications such as CIMA and ACCA. A relevant degree in accounting, finance, or business will also provide you with a strong foundation, but it’s not required to become an accountant.”

What is the difference between bookkeeping and accounting?

“Bookkeeping focuses on recording financial data, whereas accounting focuses on interpreting and using data for decision-making and reporting. Bookkeeping is also very flexible. It’s an accessible skill that can be learned and applied in various contexts, from doing basic bookkeeping for a friend or family member right up to being a self-employed bookkeeper and helping SMEs.”

Open Study College has released these comments to raise awareness of the difference between bookkeeping and accounting and provide recommendations on getting into each field.