Accounting is an information system that measures, processes, and communicates financial information about an identifiable economic entity. The major goal is analysis, interpretation, and use of that information. Accounting includes the design of an information system that meets user needs, as well as budgeting, cost analysis, auditing, and income tax preparation or planning.

What is Bookkeeping?

Bookkeeping is a component of the system of accounting. It is the process of recording transactions and keeping records.

If you participate in the operation of a household, business, or organization that generates, processes, and/or reports financial information, then you are a member of an "identifiable economic entity". Therefore, bookkeeping is an essential tool in designing an accounting system that meets your needs.