What Is the Difference Between Accounting and Bookkeeping

Since you are reading this post, you are most likely the administrator of a Texas-based business and want to identify the primary variations between accounting services and those offered by our nationally recognized professional bookkeeping agency. Is there even a difference between bookkeeping and accounting? Yes, and it has to do with the interpretation of the recorded financial data. Our company can manage your company’s transactional information. Yet, if you require specialized, in-depth help, an intelligent idea would be to call on a CPA who can work alongside us.

The principal purpose of bookkeeping is to ensure that the transactional data recorded by your firm is cataloged and prepared for audits or inspections from external parties. Our bookkeeping specialists will ensure that your receipts and payments are correctly recorded, reconcile bank statements, and prepare the necessary documentation for your tax returns. To put it simply, in bookkeeping, the main goal is to record financial data and store it securely.

On the other hand, in accounting, the primary purpose is for the recorded transactional information to be interpreted and used to improve economic performance. CPAs must have in-depth knowledge of Texas tax legislation, and the tasks they are expected to perform are more complex than those of bookkeepers. Moreover, while bookkeepers can sometimes work in tandem to reduce the costs of operations, CPAs, more often than not, work alone and handle the transactional data for a smaller number of clients compared to bookkeepers.