Bookkeeping is the systematic process of recording, organizing, and maintaining financial transactions and records of a business. It forms the foundation of effective financial management, providing insights into the company's financial health and facilitating decision-making. By documenting and categorizing transactions, bookkeeping ensures accuracy, compliance with tax laws, and transparency in financial reporting. It involves tasks such as recording sales and purchases, reconciling bank statements, generating financial statements, and monitoring cash flow. Whether using traditional paper-based methods or modern accounting software, diligent bookkeeping is essential for businesses of all sizes to track their income, expenses, assets, and liabilities accurately.