Accounting Vs. BookeepingEssay Preview: Accounting Vs. BookeepingReport this essayWhen discussing a businesss finances, in a nut shell, there are two systematic processes; bookkeeping and accounting. As discussed in the curriculum bookkeeping is described more as “recording the financial transactions of a business” (Dixon, 2008) and accounting being the “recording, reporting, and analysis of financial transactions of a business. Accounting also includes the preparation of statements concerning assets, liabilities and the operating results of a business.” (Dixon, 2008). Bookkeeping is more a system to keep track of daily transactions, whether that is a purchase by the business or a sale for the business. It is in place to keep track of the day-to-day transactions that might otherwise be looked over if an employee was not there to record it. I found a statement online that actually summed up bookkeeping perfectly which said “Bookkeeping is concerned with the systems that enable the financial information to be extracted in the transactions that generate revenue and incur expense in the business.” (StartRunGrow, 2010).
Accounting on the other hand can be more described as “the bigger picture”. Basically accounting analyzes information from the books or “bookkeeper” and creates reports for the company/business to decide which direction it is headed and if overall its a direction of success. This is not to be confused with accountancy which I found to be “giving an account for all your business transactions and this you can only do if it is done correctly and regularly” (Joubert, 2002) and accountants actually “manage” these different accounts hence the term accounting. Typically the accountant is obligated to have a certain amount of education whereas anyone can be trained to “keep the books” but the responsibility for both positions could technically be operated by the same person.
Personally, after researching this concept when I open a small business I would like to work my own “books”. By this I mean bookkeeping and the accounting aspect so that I can manage my business with a full knowledge of everything that is going on with my business. I have been brewing beer for several years now with a partner and I am using this MBA program to get a better understanding of how to go about starting our own brewery. This class is very interesting to me because it gives me financial information on where to start. With this type of business there is a lot of cash involved and costs that come with it. So I feel as though if I can start up my business and be able to be my own accountant in the beginning than it will give me the ability to train and trust another individual to take it over in the future.
I have been making money in this business for 20+ years and have invested for over 30 years of business. Although the time away from my home town has been spent with my personal trainer/brewer/etc, the experience of working and living my life, getting my beer made, taking it by my wife and family and helping my clients and customers alike, makes up the most significant part of my time. This is by no means a lifestyle business.
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My experience with creating my own brew is unique. From my first batch to production, no one has ever managed to make my beers. In doing so they made me understand what a brewery is and why a brewery must be such an integral part of the whole business. To give you an illustration of this point then I’m only going to give you two examples of my experience. The first is for one of my co-workers who works from home for an unknown business before I started the business. He had purchased a house in the area by myself/my co-worker. This worked out great, I was able to keep working. And I was able to help him with his brewing. Then he did not want to sell or go broke. Because of all his hard work I had bought a house for him to live in and have the same income he did. The next step to get this building built I set out to do and manage it. It gave me a new sense of pride and joy in working hard to support this business.
This gives me a new sense of pride for working at my job as well. The whole experience of work I’ve done here and my colleagues has been unique and has inspired countless people and made my life incredibly easier.
I am a New England born brewer and homebrewer at a point where I see myself in a new way – to make beers that others love, and to give my customers a place they can be proud of and be proud of. My first beer in 2013 was Brewster’s Hop Pale Ale in the Fall of 2014, and my first beer was in 2015 with Gia Porter with my old homebrew friend, Scott Prentice. I believe my last beer was Brewster’s White IPA with my friend, James, before my time working for Scott and James was gone. My new self has taken advantage
