Bookkeeping is the process of recording and summarizing all financial transactions of a business. It includes recording all income and expenses, as well as assets and liabilities. Bookkeeping is important for businesses of all sizes, as it helps to track financial performance, identify areas of improvement, and comply with tax laws. There are two main types of bookkeeping systems: single-entry and double-entry. Single-entry bookkeeping is a simpler system that only records the total amount of money coming in and going out of a business. Double-entry bookkeeping is a more complex system that records all financial transactions in two accounts: a debit account and a credit account. Bookkeepers use a variety of tools to track financial transactions, including ledgers, journals, and invoices. Ledgers are used to track the overall financial performance of a business, while journals are used to record individual transactions. Contracts, Receipts and Invoices are used to track sales and purchases.