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Book Keeping differs from Accounting

How Book Keeping differs from Accounting?

In normal context book keeping is treated as an accounting. But there is a gap between book keeping and accounting. Book keeping is the first step towards accounting. It includes identification of the nature of transactions, measurement of identified transaction in monetary terms, recording of measured transactions and classifying them into ledger.   

Accounting is the secondary stage. It starts where book keeping ends. Accounting includes summarizing of classified transactions, analyzing of the transactions and interpreting the result. Accounting also includes the communicating the result to interested parties.

A book keeper doesn’t require any specified knowledge or skill but an accountant must require the intellectual skills and knowledge.

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