The narrow definition of bookkeeping
Bookkeeping in the strict sense is the recording and reconciliation of transactions: sales, purchases, bank movements, expenses, and the corrections that keep the ledger accurate. It produces a trial balance but does not necessarily produce a statutory financial statement, file a tax return or offer a view on the numbers.
What full-service accounting adds
Full-service accounting extends the same engagement to the closing of the period, the preparation of statutory accounts, the tax computations and filings, the reconciliation of intercompany or inventory balances where relevant, and the reporting a lender, parent or investor expects. It normally also includes a degree of advisory contact at each closure.
Why the boundary matters in Europe
In several countries the boundary is legal rather than commercial. Where a service can only be performed by the holder of a protected title, a bookkeeping office that does not hold that title must either work under the responsibility of a registered professional or limit what it does. Provider profiles in this guide therefore distinguish between recording, compliance and reserved activities rather than grouping them loosely as accounting.
How the two are priced differently
Bookkeeping is usually priced by volume, because the cost driver is the number of transactions. Compliance and closing work is usually priced by entity, calendar or complexity, because the cost driver is professional review time. A provider that prices full-service work per transaction may be underestimating review, and one that prices bookkeeping per entity may be assuming a workload it cannot sustain.
Choosing between them
If the company's internal team can produce an accurate trial balance, the provider can be engaged for closing, filing and advisory only. If not, bookkeeping should be inside the scope, but the client should still receive monthly reporting rather than only an annual result. The choice is about who captures documents and who reviews them, not about how much accounting the client 'knows'.
Applying this
The practical test is simple: ask the provider to describe a normal month, a normal quarter and a normal year end, and identify at each point who is responsible for the task, the date it is delivered and the fee that applies.