book-keeping and accountancy

Difference between Accountancy and Book-keeping

Accountancy is the profession and the practitioners of accountancy are called accountants. Book-keeping is the basic activity of recording. On recording the transactions and events in the books of accounts, accounting does the role of analysis and reporting. Accountancy is the profession of carrying the activities of book-keeping and accounting. Accounting enjoys wider scope and includes not only book keeping but also analysis, interpretation and reporting of financial information. The later part of accounting is the core function of accounting. In the present day environment, sophisticated software packages are available, which facilitate entry of transactions and preparation of ledger accounts.

SN	Book Keeping	Accounting
1.	It is a process of identifying, measuring, recording and analyzing the transactions in books of accounts	It involves summarizing the classified transaction, interpreting the analyzed results and communicating the information to the users of financial statements.
2.	Adopt the principles of accounting for recording	Analyzing and interpreting requires skill knowledge and experience.
3.	Book-keeping is the first stage of the accounting process.	Accounting follows book keeping. It is the secondary stage.
4.	The objective is to prepare final accounts and balance sheet in a systematic manner at the end of the accounting period	The objective is to ascertain net results of financial operations and communicate the results to all stakeholders in a manner they understand.
5.	Account executives who perform this function may not require a higher level of knowledge.	Accountants who perform this function need higher analytical skills to interpret the data and to take appropriate decisions.
6.	The nature of the job is routine and clerical.	The nature of the job is non routine but analytically.

Besides all above there are some more differences but they are just minor.