Difference Between Accounting, Accountancy and Bookkeeping

Understand the difference between accounting, accountancy, and bookkeeping in the UK — from job roles to skills, scope, and qualifications.

In everyday conversation, accounting, accountancy, and bookkeeping are often used interchangeably — but in professional terms, they each refer to distinct roles, scopes and skills within financial management. Whether you’re looking to study, hire, or start a career in finance, knowing the differences matters.

Here’s a breakdown of what each one means, how they compare, and what skills or qualifications apply to each.

Accounting vs Accountancy: What’s the Difference?

In practical terms, accounting is the process. It’s the day-to-day work of recording, classifying and reporting financial transactions.

Accountancy is the broader discipline. It covers the profession as a whole — including theory, principles, systems and the body of knowledge behind financial reporting, audit, taxation and more.

Think of it this way:             

  • Accounting is what accountants do.

  • Accountancy is the field or profession they work within.

In the UK, you’ll often see the term accountancy used in course titles or job roles tied to professional qualifications (e.g. ACA, ACCA). Accounting is more commonly used in practical roles or course modules focused on technique and tools.

What Is the Scope of Accounting?

The scope of accounting includes:

  • Recording day-to-day transactions

  • Preparing ledgers, trial balances and journals

  • Drafting financial statements

  • Managing reconciliations and accruals

  • Handling VAT, payroll, and bank feeds (often via software)

It’s often seen as the practical side of finance — the technical task of keeping financial records up to date and accurate.

What Is the Scope of Accountancy?

Accountancy covers a broader range of financial activity, including:

  • Financial and management accounting

  • Auditing

  • Taxation

  • Financial analysis and reporting

  • Compliance and risk

  • Strategic financial planning

  • Advisory roles and business consultancy

It goes beyond record-keeping into interpretation, reporting, planning and compliance. Professionals in accountancy often advise clients, handle complex tax issues, prepare forecasts, and engage in higher-level financial strategy.

Bookkeeping vs Accounting – Who Does What?

Bookkeepers handle the groundwork. They record transactions, update ledgers, match receipts, and help produce basic reports. Their focus is on ensuring that the accounts are up to date and accurate — but they don’t usually interpret the data or prepare detailed financial statements.

Accountants take over from where bookkeepers leave off. They prepare formal reports, conduct financial analysis, advise on tax strategy, and ensure compliance with accounting standards and legal regulations.

Bookkeepers often work closely with accountants but perform different roles.

What Skills Are Needed to Be a Bookkeeper?

Bookkeepers need to be:

  • Detail-oriented

  • Organised and methodical

  • Good with numbers

  • Comfortable using accounting software (like Xero, QuickBooks, Sage)

  • Skilled in data entry and transaction processing

They don’t usually need a degree but often hold qualifications like AAT (Association of Accounting Technicians) or ICB (Institute of Certified Bookkeepers).

What Skills Are Needed for Accountancy?

Accountants need a broader and deeper skillset, including:

  • Financial analysis

  • Strategic thinking

  • Knowledge of tax, audit and compliance rules

  • Proficiency in preparing and interpreting reports

  • Strong communication and client-facing skills

They typically have higher-level qualifications, such as:

  • ACA (ICAEW)

  • ACCA

  • CIMA

  • CIPFA (for public sector roles)

Most professional accountants have a degree and complete a training contract or apprenticeship as part of their route to qualification.

What Are the Differences Between Courses in Accounting, Accountancy and Bookkeeping?

  • Bookkeeping courses focus on foundational tasks like transaction entry, reconciliations, VAT, and using cloud software. They are usually vocational, shorter, and practical in focus.

  • Accounting courses (e.g. AAT Level 3 or university modules) teach broader financial skills including double entry, trial balances, basic reporting, and regulatory awareness.

  • Accountancy courses (e.g. full degrees or ACA/ACCA pathways) offer a full professional education. These cover financial and management accounting, audit, tax, ethics, and commercial law.

When choosing a course, the distinction matters. Bookkeeping is ideal for those entering the workforce quickly. Accountancy suits those pursuing long-term careers in financial strategy or regulation.

Final Thoughts

While accounting, accountancy and bookkeeping are all connected, they serve different levels of the financial reporting process. Bookkeeping forms the foundation, accounting handles the records, and accountancy covers the wider interpretation, strategy, and regulation.