Book Keeping is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner. It is concerned with the permanent record of all transactions in a systematic manner to show its financial effect on the business. It covers procedural aspects of accounting work and includes record keeping function. It is the science and art of correctly recording of account all those business transactions that result in the transfer of money or money’s worth.

Book Keeping and accounting are often used interchangeably but they are different from each other. Accounting is a broader and more analytical subject. It includes the design of accounting systems which the book keepers use, preparation of financial statements, audits, cost studies, income tax work and analysis and interpretation of accounting information for internal and external end users as an aid to making business decisions. This work requires more skill, experience, and imagination.