Difference between bookkeeping and accounting?

The difference between bookkeeping and accounting lies in their scope and function:

TheAccountingis a sub-area of accounting. It primarily comprises the systematic recording of all financial transactions of a company (e.g. income, expenses, assets, liabilities) in chronological order. This activity is usually carried out in accordance with legal regulations, such as the Swiss Code of Obligations (OR).

TheAccountingis the overarching term and, in addition to accounting, also includes other areas such as:

• Financial accounting (FIBU)
• Management accounting (BEBU)
• Cost and activity accounting
• Planning, control and reporting (controlling)
• Annual financial statements and analysis

The aim of accounting is to provide a sound basis of information for business decisions and to present the financial situation of a company in a transparent manner.