6 Most Important Differences between Accountancy and Book-Keeping are listed below:
Book-Keeping:
1. The term ‘book-keeping’ is narrowly used.
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2. There are three systems in book-keeping, namely, diary system, single entry system and double entry system.
3. The work of book-keeping is preliminary.
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4. The work of book-keeping can be done by the business people themselves or by any ordinary accountant or even raw candidate in the profession.
5. Specialized skill is not required.
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6. Book-keeping is the preliminary stage and foundation for accountancy. It does not cover all the principles of accountancy.
7. It stresses the need for the “events”, both big and small in the course of financial performance.
Accountancy:
1. The term ‘Accountancy’ or ‘Accounting’ is broadly used.
2. The term ‘Accounting’ includes several other and broad meanings, such as Accounting Postulates, Accounting Principles, Accounting Concepts, Accounting Standards, etc.
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3. The work of accountancy is a wider one, including from initial stage of book-keeping to auditing, comparison, verification, etc.
4. The work of accountancy is critical and complicated one. It can be done only by chartered accountants, auditors and specialized persons in the field.
5. Specialized skills, certificates, experience are required for accountancy.
6. Accountancy starts from book-keeping. It means accountancy includes book-keeping as part and parcel of the accountancy. But book-keeping it is not accounting.