In short: Bookkeepers handle day-to-day tasks of recording financial transactions, while accountants provide insight and analysis of that data and generate accounting reports.
Bookkeeping
Bookkeeping is the day-to-day gathering, recording, and classifying of financial transactions, such as sales and receipts and purchases and payments, and is the foundation of your accounting system.
Bookkeeping is critical to operating cash-flow because bookkeeping controls the timing of receipts and payments. Effective cash-flow management requires that receipts be received as soon as possible, and payments be paid as late as possible, but on time to maintain vendor relations. Bookkeeping also determines whether your business information is timely, relevant, and reliable.
Accounting
Accounting involves analyzing, summarizing, interpreting, and communicating business information. Business information is communicated through financial and management reports and business performance analysis. Business decisions are based on financial and management reports and business performance analysis. This information must be timely, relevant, and reliable since business decisions can make or break business success.
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