Bookkeeping is the process of recording and organizing financial transactions for a business or individual. This includes tracking income, expenses, and other financial activities to ensure accurate financial records. Bookkeepers use various tools and software to maintain these records, making it easier to prepare financial statements and reports. Accurate bookkeeping is essential for effective financial management. It helps businesses understand their financial health, comply with tax regulations, and make informed decisions. By keeping detailed records, bookkeepers can provide valuable insights that aid in budgeting and forecasting future financial performance.