Bookkeeping VS. Accounting

Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base of an entity, which is needed for two basic purposes:

• Facilitating the day-to-day operations of the entity
• Preparing financial statements, tax returns, and internal reports to managers
• The financial information base should be complete, accurate, and timely.

Accounting is much broader, and includes designing the bookkeeping system, establishing controls to make sure the system is working well and the business’ assets are protected, and analyzing and verifying the recorded information.

Accountants develop the financial reporting needed by Business owners, managers, investors, and others that depend on accurate, timely financial information to evaluate performance and condition of the entity and to maximize profitability.

Accountants design the internal controls for the bookkeeping system, which serve to minimize errors in recording as well as to detect and deter theft, embezzlement, fraud, and dishonest behavior of all kinds.

Additional Resources

State of Washington Regulated Business Licensing

State of Washington Business License - Start a business

Washington Employment Security (set up online reporting)

Washington Labor & Industries

Washington Department of Revenue

EFTPS (federal tax payments)