What is bookkeeping in accounting?

Bookkeeping is the process of daily recording a company's financial transactions into organized accounts. Bookkeeping is using the accounting principles and supporting documentation of the company. For several reasons, bookkeeping is an essential part of accounting.

Bookkeeping allows you to keep up-to-date of your financial transactions, you can generate accurate financial reports that aid in measuring business performance. With well-managed bookkeeping, your business can closely monitor the financial capabilities and it will also come in handy for tax purposes.

• 2 types of bookkeeping are: single-entry bookkeeping and double-entry bookkeeping.
• 2 methods of bookkeeping are: cash accounting and accrual accounting.

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