Difference Administration and Bookkeeping
There is a slight difference in administration and bookkeeping for a company. Namely, the difference is that the administration covers the entire administration of a company. Meanwhile, accounting deals exclusively with financial records.
Administration is everything a business keeps on paper or digitally, such as receipts, invoices, contacts, documents and more. This is important because the Dutch Tax Authority wants companies to keep and preserve their business records. For example, you will need to keep track off your:
- Hours registration
- Trip registration
- Bank statements
- Documents (such as contracts)
You can keep your company's administration completely digital in Gekko, this way you don't have to keep all your paper receipts.
Bookkeeping is part of administration and only deals with financial tools, such as invoices and keeping track of costs. Invoices and expenses are part of the profit and loss account. In addition, checking your balance sheet is a part of financial administration that deals with keeping track of a company's assets (assets) and liabilities (liabilities). The balance sheet and profit and loss account together come under the financial statements which can be found on Gekko.
So the difference between the administration and bookkeeping is that the bookkeeping is only about finances, while administration contains all the information a business needs to keep going.