Accounting vs. accountancy

00:00 Accounting versus accountancy. What’s the difference, and where does bookkeeping fit in? Let’s break it down. 00:06 Welcome to The Framework. I’m your host, Jennifer Margaron. The Framework is where we research the questions you’ve been searching for and share with you what we found. 00:23 Think of accounting as the day-to-day process, while accountancy provides the overall big-picture rules and standards. 00:29 Accountancy is a broad field that involves setting up principles for handling financial data. It includes creating systems to ensure data is collected, managed and analyzed correctly. Accountancy is more about the framework that keeps financial information accurate and ethical. 00:53 On the other hand, accounting is a hands-on process. It is the act of recording, summarizing and preparing financial reports. This is where accountants come in. They use the accountancy framework to track every transaction and create documents like income statements and balance sheets. 01:16 Where does bookkeeping fit into all this? Think of bookkeeping as a more specific part of accounting. Bookkeepers handle daily transactions like expenses, sales and receipts. They record the raw financial data that accountants use to create financial statements and summaries. 01:38 Bookkeeping is an essential part of accounting because it provides the foundation for accurate data collection, which can then be analyzed to find new opportunities. 01:43 So, in short: accounting versus accountancy. Accountancy is the broader field of setting up financial systems and principles, while accounting covers the more detailed work of managing and reporting that data. Bookkeeping is the process of recording financial data, which is a foundational part of accounting. 02:11 Got it? Great. Accounting and accountancy are very important concepts in business, but they’re not the only ones. Make sure you subscribe to our channel. 02:16 As part of this series, we dive into the research and interview experienced faculty to get their insights on the topics that matter most to you. That includes careers, education and a lot more. 02:29 So don’t forget to like, subscribe and share your thoughts in the comments. Until next time, I’m your host, Jennifer Margar. Thanks for watching.