Bookkeeping is the process of recording and organizing all financial transactions of a business, including sales, expenses, payments, and receipts.

It helps you:

• Track income and expenses
• Stay compliant with tax laws
• Make better financial decisions
• Prepare for audits and reporting

Bookkeeping focuses on recording daily transactions, while accounting involves analyzing, interpreting, and reporting financial data.

Ideally, bookkeeping should be done daily or weekly to keep records accurate and up to date.

Yes, small business owners can manage their own books using tools like QuickBooks or Xero, but hiring a professional ensures accuracy and saves time.

Common documents include:

• Invoices
• Receipts
• Bank statements
• Payroll records
• Tax documents

It’s a system where every transaction is recorded in two accounts: a debit and a credit, ensuring the books always balance.

Costs vary depending on business size and complexity, ranging from monthly fixed fees to hourly rates.

Popular options include:

• QuickBooks
• Tally
• Zoho Books

Software helps automate tasks, but a bookkeeper ensures accuracy, handles complex transactions, and provides insights.