Bookkeeping is the process of monitoring and analyzing financial transactions. You ever hear the phrase “keeping the books?”. Yeah, that’s this. Ultimately, bookkeeping is any process of recording and monitoring financial transactions for recordkeeping or analysis against misplaced funds, defaulted debt, or budget accountability.

Financials recorded can include sales, purchases, receipts, payments, taxes, and more.

Most of you will remember seeing this in popular media through A Christmas Carol. Scrooge is often seen scratching away in his hefty tome along with Bob Cratchit. This is an example of bookkeeping as they are creditors and moneylenders.