Financial record keeping involves systematically tracking and organizing all financial transactions of an individual or business. This includes income, expenses, assets, and liabilities. Proper record keeping helps in budgeting, tax preparation, and financial analysis, ensuring that one can make informed decisions based on accurate data. Maintaining financial records can be done using various methods, such as spreadsheets or accounting software like QuickBooks or FreshBooks. Regularly updating these records allows for better cash flow management and compliance with legal requirements, making it easier to monitor financial health and prepare for audits or reviews.