Bookkeeping is the process of recording financial transactions in a systematic way. It involves keeping track of all the money that comes in and goes out of a business, as well as any other financial activities that affect the business's financial health. Bookkeeping is
essential for any business, big or small, as it provides a clear picture of the company's financial situation at any given time. Bookkeeping is often confused with accounting, but the two are actually quite different. While accounting involves analyzing and interpreting financial data, bookkeeping is more about the day-to-day recording of transactions. Think of bookkeeping as the foundation on which accounting is built - without accurate bookkeeping, it would be impossible to produce accurate financial statements.