Bookkeeping and accounting are the core assets of a developing or developed economy. Bookkeeping and accounting are two functions that are extremely important for every business organization. When the economy is hit with a crisis, then accounting and bookkeeping could only have the capacity to restore it back on track. Bookkeeping and accounting are very important if you need to elevate your nation's economy and payroll management. Businesses identify both of them as two guardian of the company that can never be discarded. In the simplest of terms, bookkeeping is responsible for the recording of financial transactions whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data. Bookkeeping and accounting may appear to be the same profession to an untrained eye. This is because both accounting and bookkeeping deal with financial data, require basic accounting knowledge, and classify and generate reports using the financial transactions. At the same time, both these processes are inherently different and have their own sets of advantages. Read this article to understand the major differences between bookkeeping and accounting.