Accounting is the process of recording, reporting, interpreting and analyzing financial information. Small businesses may face tough financial decisions. Some of the things that may be helpful in making these kinds of decisions include; understanding your profit margins and your current financial obligations such as debts and expenses.

Bookkeeping is the process of recording data relating to financial transactions in the accounting books of a business. A good bookkeeping system can help you keep accurate records for a range of purposes including analyzing business activities, attracting investors, lodging and paying taxes.