According to Wikipedia, bookkeeping is “the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. “Simply put, bookkeeping is an organized recording of financial transactions made in an organization. Or you can say that bookkeeping is all about recording and tracking the financial data across the business. Apart from businesses, bookkeeping is important for non-profit organizations as well as individuals. Bookkeeping provides the information from which accounts are managed. Therefore, maintaining solid and systematic bookkeeping ensures that the records of your financial transactions are accurate, up-to-date and comprehensive. In this digital era, digital or online accounting software makes bookkeeping easy and quick. A bookkeeper is supposed to record all data that are related, including but not limited to loan payments, invoices, monitoring asset depreciation, generating financial reports, payments.
Contrary to popular belief, bookkeeping and accounting are not the same. Accounting is the overall practice of managing finances while bookkeeping deals with the tasks and practices involved in the recording of financial performance. Detailed and thorough bookkeeping is important for organizations of all sizes. Bookkeeping can become more complicated with the introduction of loans, assets, investments and taxes. Recording the financial activities of a business is the key purpose of bookkeeping, letting you keep up-to-date data of current incoming and outgoing amounts.