Accounting and bookkeeping services are two highly confusing terms related to financial management. Not many can distinguish between these two terms and use these synonymously. However, the two words are not the same at all.
Bookkeeping services are referred to as the process of gathering, organizing as well as storing financial information about an organization. You can also browse to https://hbfc.ca/service/accounting-services-ontario/ to get more information about bookkeeping services in Mississauga.
This information is the key to preparing statements for the financial year, as well as filing tax returns. The service is also referred to as recordkeeping.
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Accounting, on the other hand, is a much broader service that encompasses bookkeeping as one unit. Accounting services include bookkeeping along with the interpretation of the data generated by bookkeepers to fabricate business performance.
Another difference between the two is that the accountants make the orders which bookkeepers have to follow. A key part of an accountant's job is to design internal controls for the financial system that aid to minimize any sort of error in recording financial data, besides detecting any theft, fraud, and embezzlement in the organization.
The bookkeepers have to follow these internal controls designed by the accountants. Based on the controls, these professionals then have to collect the data and prepare reports which are analyzed by the account professionals.