What is bookkeeping
Bookkeeping is the process of recording everything that has happened financially in a company into an accounting system. Think of it as a log or diary of all financial events.
When you enter receipts and invoices into your accounting system, you are doing bookkeeping.
Double-entry bookkeeping principle
When we do bookkeeping, we use something called the double-entry bookkeeping principle, which means that all transactions should be recorded in at least two places in the accounting system or two accounts. This is intended to show where the money came from and where the money went. This way, all transactions can be controlled and verified.
Most companies are required to do bookkeeping and must therefore keep accounts in this way.