What is bookkeeping in accounting?

Bookkeeping is the process of recording, organizing, and maintaining a company’s day-to-day financial transactions, such as sales, purchases, payments, and receipts. It is a fundamental part of accounting that creates the raw data, which is then used by accountants to create financial reports and provide analysis. Accurate bookkeeping is crucial for a business to understand its financial health, prepare for taxes, and make informed decisions.