What is Bookkeeping??
In my own words, Bookkeeping is the art of strategically categorizing your transactions, so that you can understand the overall health of your business.
But lets actually get a more technical understanding of what bookkeeping is...
According to the Oxford dictionary,
Bookkeeping is the activity or occupation of keeping records of the financial affairs of a business. In other words, bookkeeping is the process of documenting and organizing the financial transactions of an individual or more commonly, a business.
This process involves tracking income, expenses, assets and liabilities. But, what you never want to forget, is that the most important thing about bookkeeping... Is maintaining ACCURATE RECORDS!!!
If your transaction entries are entered inaccurately, it causes inaccurate records, which causes financial and tax documents to be incorrect. And incorrect financial and tax documents could get you into a world of trouble, including, potential jail time. So always make sure you do your best to maintain accurate bookkeeping records.
