Bookkeeping is the process of recording, classifying, and organizing financial transactions of a business. It involves maintaining accurate and up-to-date records of all monetary activities such as sales, purchases, receipts, and payments. The main goal of bookkeeping is to ensure that financial information is accurate, complete, and compliant with relevant regulations.

Key tasks involved in bookkeeping include:

Recording Transactions: Bookkeepers document every financial transaction, including sales, purchases, payments, and receipts, in a systematic manner.
Maintaining Ledgers: Transactions are recorded in different accounts or ledgers, such as the cash book, accounts payable, accounts receivable, and general ledger.
Balancing Accounts: Bookkeepers ensure that the financial records are accurate by regularly reconciling accounts and making sure debits equal credits.
Generating Financial Statements: Bookkeepers prepare key financial reports, including balance sheets, income statements, and cash flow statements, which are essential for decision-making and reporting to stakeholders.
Compliance and Reporting: They help ensure the business complies with tax laws and other regulations by maintaining accurate records for tax reporting and audits.
Bookkeeping is a critical function for businesses, as it provides the foundation for financial analysis and decision-making. While bookkeeping focuses on the routine recording of financial transactions, it is a key part of the larger process of accounting, which involves interpreting, analyzing, and reporting financial data.