Bookkeeping focuses on recording financial data, while accounting involves analyzing, interpreting, and reporting that data for decision-making.

It helps track income and expenses, ensures legal compliance, and provides the data needed for accurate financial reporting and tax preparation.

Cash-based accounting records transactions when money changes hands, while accrual-based accounting records them when they are incurred or earned, regardless of payment.

It’s a method where every financial transaction affects at least two accounts, ensuring accuracy and balance in financial records.