Simply said, bookkeeping is the systematic process of storing, organising, and tracking business transactional data in accounting. It is one of the most important aspects of accounting that ensures the proper financial operation of a company.

An skilled bookkeeper oversees everyday business transactions in order to maintain track of the budget throughout time. To be more detailed, bookkeepers track finances, such as sales, wages, loans, investments, debts, interests, and other associated data—in most cases, an accountant tracks and analyses the finances and their related aspects.

The double-entry bookkeeping system is the most common method of record keeping used by most businesses, bookkeepers, and accountants.

The procedure for double-entry bookkeeping is more comprehensive and intricate than the single-entry bookkeeping procedure. It teaches the notion of debit and credit, which states that every transaction involves the receipt of something (debit) and the giving up of something (credit), and that each transaction impacts two or more accounts.

A double-entry bookkeeping system offers the advantage of having a process in place to ensure that business transactions are documented accurately and comprehensively. It is a reliable source of financial information as well as an objective appraisal of a company's state or performance.

Stakeholders in a company want to know whether the company is profitable or losing money. They also want to know if the business's capital investment is growing or shrinking during the accounting period.

Accounting is a combination of science and art. Accounting is the science of systematically recording, classifying, and summarising financial transactions in monetary terms.

Here are some Advantages of Accounting:

• Maintenance of business records

• Preparation of financial statements

• Comparison of results

• Decision making

• Evidence in legal matters

• Provides information to related parties

• Helps in taxation matters

• Valuation of business

• Replacement of memory