Is bookkeeping a part of accounting
Bookkeeping is considered a part of accounting because it is the foundation on which accounting is built. Bookkeeping involves the day-to-day recording and organizing of financial transactions such as sales, purchases, payments, and receipts. The goal of book-keeping is to maintain accurate and up-to-date financial records that can be used to generate financial statements and other accounting reports.
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Accounting, on the other hand, involves analyzing, interpreting, and summarizing financial data to provide insight into a business’s financial health. Accounting involves using the financial data collected through book-keeping to prepare financial statements such as balance sheets, income statements, and cash flow statements, and to provide financial analysis and forecasting.
Bookkeeping provides the basic financial data that accounting uses to perform its functions. Without accurate and complete financial records, accounting would be impossible. Therefore, book-keeping is considered a fundamental part of the accounting process.
In summary, It is a part of accounting because it provides the foundation for the accounting process. Bookkeeping provides the basic financial data that accounting uses to perform its functions, such as preparing financial statements and providing financial analysis and forecasting.
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