Accounting & Bookkeeping

Bookkeeping vs. Accounting

Bookkeeping vs. accounting - how are they similar and different? We've answered some of the most pressing questions we get at Tentho.

What is the difference between bookkeeping and accounting?

We often get this question, and it’s an important one for business owners to understand. So we’ve compiled a list of answers to some of the key questions associated with this topic to help you better understand the difference between bookkeeping vs. accounting.

How are bookkeeping and accounting similar?

At their core, bookkeeping and accounting share some common elements: Numbers create order, each piece of data has a place, and when done correctly, everything fits together. But in the big picture, each of these intertwined disciplines provides different benefits for your business. And furthermore, each requires specific resources and support to ensure they are done accurately and managed correctly.

What activities define bookkeeping?

Bookkeeping is considered the foundation or base of accounting. Most of a bookkeeper’s work involves identifying, compiling, and recording accurate financial data on which someone else will base decisions.

What activities define accounting?

Accounting utilizes the information and data provided by bookkeeping to prepare financial reports and statements. Accountants summarize, interpret, and communicate financial transactions which were classified in the ledger account. They are not primarily concerned with presenting or using the information to support day-to-day business operations or management decision-making.

Which activities does Tentho perform?

We do it all! Our founding principle (which still guides us today) is to increase the efficiency with which businesses manage their financial data. We do this through the expert application of technology, such as integrative apps that allow businesses to enter data remotely and access business records virtually. In tandem, we also perform accounting services, including accounts payable, accounts receivable, payroll, sales tax preparation/filing, transaction management, and financial statement preparation.

Beyond managing your financial data, we support the actual operation of your business. This includes operational activities such as supporting your customer and vendor interactions. Most importantly, we are a consulting partner, providing advisory services for founders and executives. By digging deep into the financials, we provide collaborative support for high-level decision-making.

Why use Tentho instead of an accounting firm?

Tentho provides the key services of small business bookkeeping, accounting, and consulting firms. But by combining our expertise in financial data management and technology, we deliver these services more efficiently. In doing so, we offer our expertise for rates that are often less than half of those from a traditional accounting firm, enabling our clients to get more done with less investment.

For more information, visit our bookkeeping and accounting membership options, or click here to schedule a free consultation with one of our financial experts.

Unlock your potential and navigate the complexities of your industry with Tentho as your guide! We're passionate about providing insights and inspiration to fuel your journey. While this post is crafted to enlighten and empower, it's important to complement this knowledge with tailored advice. We encourage you to consult with your own legal, business, or tax professional to address your unique needs and circumstances.


At Tentho, we're committed to your success and stand ready to assist you in understanding the broader landscape. However, please note that Tentho does not accept liability for any actions taken based on this post. Your informed decisions, guided by personal consultation with experts, are crucial to your achievements. Let's collaborate to make informed decisions that propel you forward, ensuring that your triumphs are as personal and impactful as your aspirations


Similar posts


Stay in the Know: Subscribe to Our Monthly Newsletter

Join our exclusive monthly newsletter to receive expert insights, industry trends, valuable tips, and special offers straight to your inbox. Don't miss out on the latest resources and strategies designed to help your small business thrive.