It is the systematic way of recording, organizing, and managing a business's financial transactions. It is a fundamental part of accounting that ensures accurate financial records, compliance with tax regulations, and informed decision-making for businesses. Main Functions of Bookkeeping are recording financial transactions and tracking income, expenses, sales, and purchases in an organized manner, bank reconciliation (Matching bank statements with financial records to identify discrepancies and ensure accuracy) , maintaining general ledgers( Keeping a detailed record of financial transactions categorized into different accounts), generating financial reports (creating profit & loss statements, balance sheets), Accounts Payable & Receivable Management(tracking incoming payments from customers and outgoing payments to vendors), Payroll Processing (managing employee salaries, tax deductions, and benefits calculations), Compliance & Tax Preparation(Ensuring financial records meet legal and tax regulations for smooth tax filing). Further, it helps businesses track financial health and profitability, supports better budgeting and financial planning, and ensures compliance with tax laws and financial regulations. Reduces errors and fraud risks through systematic record-keeping.Bookkeeping can be done manually, using spreadsheets, or with accounting software like Quick Books, Xero, and Microsoft Dynamics 365 to enhance efficiency and accuracy.