Difference Between Bookkeeping And Accounting

 

Accounting Bookkeeping
Accounting is the process of recording, summarising, reporting, analysing and interpretation of financial information. Book-keeping is part of the accounting process. It involves the process of recording accounting data according to set rules. 
Role of accounting is to communicate financial information for decision-making purposes.  Role of book-keeping is to ensure a systematic and accurate recording of business events

4 Notable Quotes On the Value of Accounting Knowledge from the World’s Richest and Influential People

Warren_Buffett_KU_Visit

 

 

 

 

 

 

 

 

 

 

Image by Mark Hirschey (Work of Mark Hirschey) [CC-BY-SA-2.0], via Wikimedia Commons
 

“You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business and it’s an imperfect language, but unless you are willing to put in the effort to learn accounting – how to read and interpret financial statements – you really shouldn’t select stocks yourself”Warren Buffett

Warren Edward Buffett (born August 30, 1930) is an American investor, industrialist and philanthropist. He is widely regarded as one of the most successful investors in the world. Often called the “legendary investor Warren Buffett” he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world’s wealthiest people, he was ranked as the world’s second wealthiest person in 2009 and is currently the third wealthiest person in the world as of 2010.

charlie munger on accounting

Image by Nick J Webb

“You have to know accounting. It’s the language of practical business life. It was a very useful thing to deliver to civilization. I’ve heard it came to civilization through Venice which of course was once the great commercial power in the Mediterranean. However, double entry bookkeeping was a hell of an invention.” Charlie Munger

Charles Thomas Munger (born January 1, 1924 in Omaha, Nebraska) is an investment manager and philanthropist. He is Vice-Chairman of Berkshire Hathaway Corporation, the diversified investment corporation chaired by Warren Buffett. Munger is also the chairman of Wesco Financial Corporation, based in Pasadena, California. (Source: Wikipedia)

Alan_Greenspan_on accounting

Image: Alan Greenspan Source: Bureau of Engraving and Imprinting.

“It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations (accounting), enhances a person’s ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making” Alan Greenspan (parenthesis mine)

Alan Greenspan (born March 6, 1926) is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private advisor and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006 after the second-longest tenure in the position. (Source: Wikipedia)

robert_kiyosaki

“The only way to get out of the “Rat Race” is to prove your proficiency at both accounting and investing, arguably two of the most difficult subjects to master.”

“I have mentioned before that financial intelligence is a synergy of accounting, investing, marketing and law. Combine those four technical skills and making money with money is easier.” Robert Kiyosaki

Robert Toru Kiyosaki (born April 8, 1947) is an American investor, businessman, self-help author and motivational speaker. Kiyosaki is best known for his Rich Dad Poor Dad series of motivational books and other material published under the Rich Dad brand. He has written 15 books which have combined sales of over 26 million copies. Three of his books, Rich Dad Poor Dad, Rich Dad’s CASHFLOW Quadrant, and Rich Dad’s Guide to Investing, have been on the top 10 best-seller lists simultaneously on The Wall Street Journal, USA Today and the New York Times. Rich Kid Smart Kid was published in 2001, with the intent to help parents teach their children financial concepts. He has created three “Cashflow” board and software games for adults and children and has a series of “Rich Dad” audio cassettes and disks. (Source: Wikipedia)

READ MORE:

5 Reasons Why Principles Of Accounts

Really Useful Schooling by Adrian Tan, Author of The Teenage Textbook

Dump the Monetary Concept – Measure What Makes Life Worthwhile!

“Not everything that can be counted counts, and not everything that counts can be counted.” Albert Einstein, physicist (1879 – 1955)

The principle of monetary concept states that anything which cannot be measured in monetary
terms will not be considered as a part of the accounting data. While accounting captures the numerical performance of a business, many will agree that numbers tell only the part of a business’ story.

Work culture, morale and happiness of workers, teamwork and job satisfaction all play a part in make a business successful.

In this TED Talk, Chip Conley shares on Measuring What Makes Life Worthwhile, some of points Chip covered includes:

– 94% of the business owners believes that the intangible things are important ( things like intellectual property, corporate culture and brand loyalty).

– Only 5% of these leaders have a means to measure these intangibles in the business.

– An alternative definition of success introduced by the King of Bhutan: The Gross Happiness Index. (GHI)

– The science behind the art: the metrics of the GHI.

Enjoy!

[VIDEO LENGTH: 17:40 MINS]

About Chip Conley (from TED.com)

Chip Conley In 1987, at the age of 26 and seeking a little “joy of life,” Chip Conley founded Joie de Vivre Hospitality by transforming a small motel in San Francisco’s seedy Tenderloin district into the now-legendary Phoenix.

Today, Joie de Vivre operates nearly 40 unique hotels across California, each built on an innovative design formula that inspires guests to experience an “identity refreshment” during their visits.

During the dotcom bust in 2001, Conley found himself in the self-help section of the bookstore, where he became reacquainted with one of the most famous theories of human behavior — Maslow’s hierarchy of needs, which separates human desires into five ascending levels, from base needs such as eating to the highest goal of self-actualization, characterized by the full realization and achievement of one’s potential. Influenced by Maslow’s pyramid, Conley revamped his business model to focus on the intangible, higher needs of his company’s three main constituencies — employees, customers and investors. He credits this shift for helping Joie de Vivre triple its annual revenues between 2001 and 2008.

Conley has written three books, including his most recent, PEAK: How Great Companies Get Their Mojo from Maslow, and is at work on two new ones, Emotional Equations and PEAK Leadership. He consults widely on transformative enterprises, corporate social responsibility and creative business development. He traveled to Bhutan last year to study its Gross National Happiness index, the country’s unique method of measuring success and its citizens’ quality of life.

Accounting Degree through NTU, NUS or SMU?

Jump Grade’s Guide to Accountancy Programmes in Singapore Universities*singapore-universities-accountancy-programme

NTU

Bachelor of Accountancy Program

NUS

BAA (Accountancy) Programme

SIM

Bachelor of Business (Accounting)

SMU

Bachelor of Accountancy Programme

Direct Honors

Yes

No

Yes

Double Degrees

Yes

Yes

N.A

Yes

Entry Grade Requirements

Grade Profile

A Level

AAA/A or AAB/B

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.71 or 3.95

90th Percentile and 10th Percentile respectively

Grade Profile

A Level

AAA/A or AAB/B

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.64 or 3.95

90th Percentile and 10th Percentile respectively

Two GCE ‘A’ / H2 level passes with a pass in either Knowledge & Inquiry or General Paper, or English at ‘O’ level

Non-Business Diplomas from any of the polytechnics

Grade Profile

A Level

AAA/A or ABB/A

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.60 or 3.92

90th Percentile and 10th Percentile respectively

Cost Duration

3 years

3.5 – 4 years

2 – 3.5 years

3 – 4years

Cost Fees*

S$6,360 per year

S$7,000 per year

A’Levels (3.5yrs)

S$31,843.20

S$9,130 per year

Non – Business Diploma (3 yrs)

S$23,882.40

Business & Related Diploma (2yrs)

S$16,991.60

Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– NTU internal Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– NUS internal Scholarships

– SIM internal Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– SMU internal Scholarships

Accreditations

ACRA

AACSB

CIMA

CPA Australia

EQUIS

ICAA

ICAEW

ICPAS

ACRA

CPA Australia

ICPAS

CPA Australia

ACRA

CPA Australia

ICAA

ICAEW

ICPAS

Exchange Program

Yes

Yes

No information

Yes

Internship opportunities

Local and Abroad

Local and Abroad

Not Required

Local and Abroad

Initials on graduation

B Acc

B BA (Acc)

BBus (Acc) RMIT

B Acc

Career Prospects

Direct qualification to be an auditor in Singapore

Yes

Yes

As an equivalent

Yes

Mean Starting Salaries

$2,601

$2,929

Data not available

$2,995

Long working hours

Included

Included

Included

Included

*rates quoted here are correct as at date of post and are subject to change from time to time. Fees quoted in the chart are for the AY 2009/10 intake. Male undergraduates who went through National Service may pay lesser than the quoted amount as their fees are locked in the year they received acceptance of placement in the University.

The annual subsidized fees exclude GST which is separately funded by the Ministry of Education. Hence, students paying subsidized fees do not have to pay GST. Course fees do not include living and miscellaneous expenses. Varsities may also charge for additional modules taken (for example, during the term breaks). Please check the universities’ websites for more/updated details.

Update (6th November 2009): It is a pre-requisite for someone who wish to practise in Singapore to be registered as a non-practising member with ICPAS.

Information Sources:

Salaries

Ministry of Manpower’s Website:

Employment and Monthly Gross Starting Salary of University Graduates in Full-Time Permanent Employment by Degree, 2007

http://www.mom.gov.sg/publish/etc/medialib/mom_library/mrsd/row_2007.Par.54570.File.tmp/2007Wages_table11.xls

Course Fees

NTU : http://admissions.ntu.edu.sg/undergraduate/Pages/TuitionFee.aspx

NUS : http://www.nus.edu.sg/registrar/edu/UG/fees.html

SIM: http://www1.sim.edu.sg/sge/pub/gen/sge_pub_gen_content.cfm?mnuid=157&ID=117

SMU :http://www.smu.edu.sg/financial/fees/index.asp

Admission Criteria

NTU: http://www.ntu.edu.sg/oad2/pdfs/COP.pdf

NUS: http://bschool.nus.edu.sg/NUSBBA/UndergraduateDegrees/BBAAccountancyProgramme/Curriculum/tabid/709/Default.aspx#2

http://www.nus.edu.sg/oam/gradeprofile/sprogramme-igp.html

SIM: http://www1.sim.edu.sg/sge/pub/gen/sge_pub_gen_content.cfm?mnuid=157&ID=117

SMU:

http://asia2.digitalflip.com/a1/fdm/fvxpress.html

Abbreviations

ACRA – Accounting and Corporate Regulatory Authority

AACSB – Association to Advance Collegiate Schools of Business

CIMA -Chartered Institute of Management Accountants

CPA Australia – Certified Practising Accountant Australia

EQUIS – European Quality Improvement System

ICAA – Institute of Chartered Accountants in Australia

ICAEW- Institute of Chartered Accountants in England and Wales

ICPAS- Institute of Chartered Public Accountants Singapore

All information correct as of date of publishing.

Download Comparison Chart in PDF here !