Bookkeeping involves the systematic recording of the financial transactions and the maintenance of the correct & up-to-date financial records of the organisation by an accountant clerk. This process is applicable across all types of organisations, be they business firm, charitable institute or even an association of sports.
Effective management of the Bookkeeping is a vital operation if business decisions are to be well informed and prudent as they make the business owners or managers acutely aware of the losses and the profits. In short bookkeeping brings the result of the economic activities to the surface.
Financial accounting is the reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis.
The key difference between financial and managerial accounting is that financial accounting is aimed at providing information to parties outside the organization, whereas managerial accounting information is aimed at helping managers within the organisation make decisions.