Bookkeeping is the systematic process of recording, organizing, and tracking financial transactions and activities within an organization or for an individual. It serves as the foundation of accurate financial management by capturing every financial event, such as purchases, sales, payments, and receipts, and categorizing them into relevant accounts. Through the principles of double-entry accounting, bookkeeping ensures that debits and credits are accurately balanced, maintaining the financial equilibrium. This organized record-keeping is crucial for producing financial statements, tracking cash flow, adhering to tax requirements, and making informed decisions. Whether for businesses or individuals, effective bookkeeping provides a clear and reliable snapshot of financial health, enabling the smooth operation and growth of an entity.