Bookkeeping is the process of recording and managing all financial transactions made by a business. This includes tracking sales, purchases, receipts, and payments. By keeping these records up to date, bookkeeping ensures that businesses can produce accurate financial reports, such as profit and loss statements, balance sheets, and cash flow statements.

Proper bookkeeping forms the foundation for informed financial decision-making, helping businesses to not only stay compliant with tax laws but also to grow sustainably and efficiently.