Bookkeeping versus Accounting

Published: 2019-05-28 10:25:06
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A comparison between accounting and bookkeeping introduces many similarities between the two. At face value, the two careers may appear the same but their responsibilities are very different. In most instances, the careers group is taken as Bookkeeping, Accounting, and Auditing with some books not attempting to distinguish between the three roles. Auditing is, however, different from the two since it requires additional skills than the accounting and Bookkeeping. Comparing the two possible careers, accounting is a better option compared to bookkeeping due to various reasons.

To analyze the two careers, we need to distinguish between the responsibilities devoted for each of them. To start with, the job description is important since the people come together. Bookkeeping involves recording all the organizations transactions for financial accountability purposes. Bookkeeping also involves compiling financial statements and reports for the seniors such as supervisors and manager. Accounting, on the other hand, involves more complex activities than bookkeeping. It involves analyzing, summarizing, interpreting, classifying, and reporting the financial data acquired at the bookkeeping level. The accounting clerks are in charge of compiling reports necessary to determine the financial situation of the organization and subsequent financial decisions of the organization (Career, N.p).

The difference in jurisdiction brings the first aspect of the comparison, which is the level of difficulty. A career should be utilized to the maximum level. In Bookkeeping, the employee works in virtually everything to do with the financial transactions in the organization. The organization is usually small which means that the bookkeeping employee may still be charged with creating accounting. The combined duties make it confusing for the employees since they cannot achieve their optimum performance due to the huge number of roles and responsibilities. However, in accounting, the clerks just work with the provided data in a well-synchronized process. The accounting clerk also has different levels determined by the experience that the employee has. For instance, entry-level accountants can perform simple accounting tasks while the senior accountants are experienced and can handle more complex accounting tasks (Career, N.p).

Career advancement is yet another aspect that aids the choice between bookkeeping and accounting. Normally, bookkeeping clerks are confined to keeping financial transaction records, posting debit and credit records as well as produce the financial reports for the supervisors and managers. The activities involve calculations but which are not as a comprehensive as those in accounting. A bookkeeping clerks process of advancement to accounting may require training (Formal or informal) and advancement of skills such as integrity, computer proficiency, mathematics skills, and attention to details. On the other hand, career advancement for the accountants is not as difficult. Accountants have basic mathematical skills, are proficient with the computer and software skills, are somehow keen to detail and are good in analytics (BLS, N.p).The accounting clerks are therefore more likely to advance their level for instance from their entry level to the senior level accountants. Additionally, after progressing to senior accountants, the accounting clerks can become auditors through experience. Experience in accounting enables an employee develop skills such as improving the attention devoted to details, increasing proficiency in specific accounting software, developing high levels of integrity and basic training on higher levels of accounting techniques. The bookkeeping clerk will take longer to develop such experience given they perform general tasks as compared to the specific tasks performed by the accounting clerks (BLS, N.p).

Salary and benefits are also aspects used to determine which career is better between bookkeeping and accounting. When calculating the average salary between in accounting and bookkeeping the jobs are taken as belonging to the same job group. The salary for the bookkeepers, accountants, and auditors is calculated as the same when arriving at career averages. For instance, the median annual wage for the three careers was calculated to be $35, 170 in May 2012. The average wage was calculated by the United States Bureau of Labor Statistics. The basis of the classification and the wage calculation, Bookkeeping and Accounting may seem as if they are in the same salary category. However, an array of benefits comes with working as an accountant but not as a bookkeeper. For instance, the bookkeeper deals with many people including other employees of the organizations. The bookkeeper may report either to the supervisor, the manager or both. However, the accountant has more autonomy in that he only works with the financial documents, which have already been compiled and does not answer to many people except the senior editor or the manager. Additionally, the prospects of career advancement of an accountant are higher. Advancement of the career makes accounting means remuneration increment thereby, making accounting preferable to bookkeeping (BLS, N.p).

Considering all the above factors, Accounting is a better choice for me than bookkeeping. The decision for choosing accounting over advertising is drawn from the three aspects important to me in career choice. First, the Accounting is more role specific than the bookkeeping role. Role specificity is important for optimal performance. Accounting has higher prospects of career advancement that bookkeeping is making it the better option. The bookkeeping clerks must become accounting clerks to advance their careers thereby placing accounting a step higher than Bookkeeping. Lastly, the salary and benefits in accounting make accounting more lucrative when compared to bookkeeping. While the salary for accounting clerks and bookkeeping clerks may be the same, then career advancement prospects in accounting make it more enticing.

Works Cited

Bureau of Labor Statistics. "Bookkeeping, Accounting, and Auditing Clerks : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. N.p., 2012. Web. 5 Oct. 2015.

Bureau of Labor Statistics. "Bookkeeping, Accounting, and Auditing Clerks : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. N.p., 2012. Web. 5 Oct. 2015.

Bureau of Labour Statistics. "Bookkeeping, Accounting, and Auditing Clerks : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. N.p., 2012. Web. 5 Oct. 2015.

CareerOneStop. "Occupation Profile - America's Career InfoNet." Welcome to America's Career InfoNet. N.p., 2015. Web. 5 Oct. 2015.

sheldon

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