"A bookkeeper records the financial transactions of an organization and takes care of day-to-day functions such as recording sales and invoices, paying bills and processing payroll," Stephens said. "Accountants take the financial data and analyze it to help organizations make financial decisions."

Bookkeeping is an integral part of accounting and largely focuses on recording day-to-day financial transaction of the business. All the financial transactions such as sales earned revenue, payment of taxes, earned interest, payroll and other operational expenses, loans investments etc.

An introduction to bookkeeping basics Accounts: The categories under which all business transactions fall. Assets: Things the business has bought and owns (or part-owns), inventory, and money owed to the business as accounts receivable. Liabilities: Amounts the business owes in unpaid bills, taxes, wages, or loans.