Accounting and bookkeeping in Dubai are major departments of a company. Company cannot grow without proper budgeting and to meet future requirements of company finance department of company must be strong. But bookkeeping and accounting are mistakenly understood and both are considered same. But in real, there is difference between these two. Therefore, we have added some differences in this article for your understanding.
What is accounting?
Accounting is related to summarizing, interpreting and dealing with all problems and finance related issues. It is also related to maintaining finance and budgeting of company.
What is bookkeeping?
Bookkeeping is related to measuring and recording data related to transactions. So in simple words, bookkeepers do all documentation work related to finance and accounting including transactions and salaries.
Although, accounting and bookkeeping come under the same division but if we keenly observe there are some differences between accounting and bookkeeping.
Some of these differences are given in this article.
Decision making rights:
Accounting department has more decision making rights than bookkeeping department. Actions can be taken on the advice of accounting department and management of company can make critical decisions whereas action cannot be proceeded based on the report of bookkeeping.
Basically, bookkeeping keep all the record of finance of company and do all work related to documentation. Accounting department is responsible to deal with all financial situations of company including financial crisis, budgeting etc.
Skills and qualifications:
There are no specific skills required to be a bookkeeper. Anyone who has basic knowledge of finance, computer, Ms word, Ms excel and documentation can be a bookkeeper. Whereas to be an accountant you must have proper degree of accounting and finance. And accountant must have analytical skills.
There are no specific analytical skills required for bookkeeping but the one must have knowledge related to documentation. Whereas accountant must have analytical and interpretation skills.
Financial statements are not required in bookkeeping. The only thing required in the bookkeeping is record and documentation of everything related to finance. But financial statements are required in accounting. So we can say that accounting is superior to bookkeeping in terms of position in the company and rights.
Need help securing your ICV certification? Call us today!