Bookkeeping is the process of recording, organizing, and tracking a company's financial transactions. This includes documenting expense, revenue, and other monetary activity that occurs during a specific period.

 

To accomplish this, bookkeepers typically monitor accounts payable and accounts receivable, track inventory, reconcile bank statements, and generate financial reports.

 

The purpose of bookkeeping is to ensure accurate financial records that are used for tax filings, auditing, budgeting, and decision-making purposes. Effective bookkeeping practices are essential for maintaining a company's financial health and ensuring compliance with legal and regulatory requirements.