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Defining Bookkeeping Accounting

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Defining bookkeeping
Bookkeeping is an indispensable subset of accounting. Bookkeeping refers to the process of
accumulating, organizing, storing, and accessing the financial information base of an entity, which
is needed for two basic purposes:
Facilitating the day-to-day operations of the entity
Preparing financial statements, tax returns, and internal reports to managers
Bookkeeping (also called recordkeeping) can be thought of as the financial information
infrastructure of an entity. The financial information base should be complete, accurate, and
timely. Every recordkeeping system needs quality controls built into it, which are called internal
controls.
Defining accounting
The term accounting is much broader, going into the realm of designing the bookkeeping system,
establishing controls to make sure the system is working well, and analyzing and verifying the
recorded information. Accountants give orders; bookkeepers follow them.
Accounting encompasses the problems in measuring the financial effects of economic activity.
Furthermore, accounting includes the function of financial reporting of values and performance
measures to those that need the information. Business managers, investors, and many others
depend on financial reports for information about the performance and condition of the entity.
Accountants design the internal controls for the bookkeeping system, which serve to minimize
errors in recording the large number of activities that an entity engages in over the period. The
internal controls that accountants design are also relied on to detect and deter theft, embezzlement,
fraud, and dishonest behavior of all kinds.
Accountants prepare reports based on the information accumulated by the bookkeeping process:
financial statements, tax returns, and various confidential reports to managers. Measuring profit is
a critical task that accountants perform a task that depends on the accuracy of the information
recorded by the bookkeeper. The accountant decides how to measure sales revenue and expenses
to determine the profit or loss for the period.

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On a Role The Job Titles of Accounting
Beyond the specialized functions required in an audit, accountants can occupy diverse roles within
a business. For example, listed below are some of the most common functions of accountants as
well as requirements for each title
5,6
.
Payroll Clerk
A payroll clerk is responsible for maintaining payroll information through collections and
recording data. Payroll clerks also handle all payroll discrepancies. Typically they are required to
have between zero and three years of experience with at least a high school degree. Payroll clerks
are a great way to gain experience in the accounting field.
Accounts Receivable
An accounts receivable (A/R) clerk is responsible for posting payments, updating the receivable
account by totaling unpaid invoices, and in charge of maintaining the receivables account.
Typically, they are required to have between zero and three years of experience with a high school
degree. Some companies may call this position Accountant 1 (with other functions) and require a
bachelor’s degree in accounting. Accounts receivable clerks are great entry level accountant job.
Accountants Payable
An accounts payable (A/P) clerk is responsible for paying invoices and verifies and maintains
transactions. Typically, they are required to have between zero and three years of experience with
a high school degree. Some companies may call this position Accountant 1 (and combine it with
the accounts receivable clerk) and require a bachelor’s degree in accounting. Accounts payable
clerks are another great entry level accountant job.
Tax Accountant
A tax accountant is responsible for recommending tax strategies through research and analysis of
tax laws. Tax accountants also file federal, state, and local tax returns. A tax accountant requires a
bachelor’s degree as well as at least zero to two years of experience in a tax-related area.
Bookkeeper
A bookkeeper records all financial transactions. Bookkeepers maintain and balance subsidiary,
general ledger, and historical accounts. Typically, bookkeepers are required to have between two
to four years of experience or an associate’s degree.
Internal Auditor
An internal auditor will ensure that financial practices are compliant with set standards. They are
also required to verify all liabilities and assets within a company and report all their findings to the
appropriate finance leader. An internal auditor must have between zero and two years of
experience with a bachelor’s degree in accounting.

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Defining bookkeeping Bookkeeping is an indispensable subset of accounting. Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base of an entity, which is needed for two basic purposes: Facilitating the day-to-day operations of the entity Preparing financial statements, tax returns, and internal reports to managers Bookkeeping (also called recordkeeping) can be thought of as the financial information infrastructure of an entity. The financial information base should be complete, accurate, and timely. Every recordkeeping system needs quality controls built into it, which are called internal controls. Defining accounting The term accounting is much broader, going into the realm of designing the bookkeeping system, establishing controls to make sure the system is working well, and analyzing and verifying the recorded information. Accountants give orders; bookkeepers follow them. Accounting encompasses the problems in measuring the financial effects of economic activity. Furthermore, accounting includes the function of financial reporting of values and performance measures to those that need the information. Business manage ...
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