Bookkeeping refers to the systematic recording and organizing of financial transactions and activities within a business. It involves maintaining accurate and up-to-date records of income, expenses, assets, and liabilities to provide a clear financial picture.
The primary functions of bookkeeping include tracking daily transactions, managing accounts receivable and payable, reconciling bank statements, and preparing financial reports. Bookkeeping can be done manually or through accounting software, and it serves as the foundation for preparing financial statements and conducting audits.
For example, a bookkeeper records sales made by a retail store, enters invoice details from suppliers, and processes payroll for employees, ensuring that all financial data is accurately captured and accessible for review and analysis.
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