Define Accounting and Bookkeeping and compare and contrast the role of Essay

cook be and Bookkeeping and compargon and contrast the role of Professional Accountants and Bookkeepers - Essay ExampleThe book withal described the use of journals and ledgers. accounting contained two parts bookkeeping and accounting. Both became useful to the merchants and the professional from term to time. It plays an important function in recording the fiscal transaction of an organization. It provides training to a whole break away of users. The essay elaborates basics of accountancy and the use of accountancy in different areas of management by the accountants and the bookkeepers (Gazely and Lambert, 2006) Accounting and Bookkeeping Accountancy does the task of maintaining records and it alike involves in preparation of monetary reports for a particular business. It also involves in auditing those reports. It is concerned with the knowledge, practices and the principles of accounting for meeting the general needs of a running business. According to Kohler Accountanc y refers to the entire body of the theory and practices of accounting (A. Goyal and M. Goyal, 2009). The term accountancy can be divided into two parts Accounting and Bookkeeping. Accounting Accounting basically deals with the provision or measurement of assurance of the financial information that are used by a number of users such as the lenders, investors, managers and the decision makers of a particular organization (Fitzpatrick, 2010). According to American Accounting Association it is a process of identifying, measuring and communication information to permit judgment and decisions by the users (Khan and Jain, 2007). It also measures the different economic activities which are responsible for touching both the inflow and outflow of the resources of the economy. It serves as a language to the business as it communicates its aftermaths to the business (Hugh and Hobbs, 2005). there are certain characteristics of accounting which are as follows Accounting concerns of only the fin ancial proceeding and are expressed in terms of money. The information which cannot be expressed in term of money cannot be included in the books of accounts. After the identification of the financial information these are enter in the books of accounts. journal is known as the primary book of accounts in which all the information is recorded at first. When information are vast then the book of accounts is sub-divided into a number of various books such as gross sales book, Purchase Book, Sales Return Books, Cash Book and many more (Stittle and Wearing, 2008) After recording of the financial data, they are classified into different groups of data which are of same nature. The book in which these are recorded are known as the Ledger. After classifying the data, they are summarized and presented in a manner that is understood by a layman also. This process is concerned with the preparation of Profit and loss account, trial eternal sleep and balance sheet. The information thus got f rom the summarization of the data is to be analysed to get a result. Ratio analysis is a very common tool for analysis and thus it helps both the management and the external users to take their decisions. The result thus communicates some information to the interested party and they can take an appropriate decision (Warren, 2009). at that place are different types of accounting which are as follows Financial accounting concentrates on only those transactions that have already occurred in the past. The main aim of this type of accounting is to