BOOKKEEPING AND CASH

MANAGEMENT SEMINAR
Prepared by Agustin D. Pana
Sumifru Controller
What is Bookkeeping?
 refers mainly to the record keeping aspects of
accounting.
 Bookkeeping is the recording of financial
transactions
Short History
Bookkeeping and accounting
 While bookkeeping and accountingare both
essential business functions, there is an important
distinction. Bookkeeping is responsible for the
recording of financial transactions. Accounting is
responsible for interpreting, classifying, analyzing,
reporting and summarizing financial data. The
biggest difference between accounting and
bookkeeping is that accounting involves interpreting
and analyzing data and bookkeeping does not.
Cont.
 The Business Financial Process
 The accounting process involves recording,
interpreting, classifying, analyzing, reporting and
summarizing financial data. Bookkeeping is the
process of recording financial transactions.
Recording financial transactions is the first part of
and the foundation of the accounting process.
Bookkeepers handle the recording part of the
accounting process. Accountants handle all parts of
the accounting process.
Cont.
 Bookkeeping and accounting can appear to be the same
profession to the untrained eye. Both bookkeepers and
accountants work with financial data. To enter either
profession, you must have basic accounting knowledge.
Bookkeepers in smaller companies often handle more of the
accounting process than simply recording transactions. They
also classify and generate reports using the financial
transactions. They may not have the education required to
handle these tasks, but this is possible because most
accounting software automates reports and memorizes
transactions making transaction classification easier.
Sometimes, an accountant records the financial transactions
for a company, handling the bookkeeping portion of the
accounting process.