Bookkeeping is the act of recording and organizing financial transactions in the accounting system in accordance with the generally accepted accounting principles (GAAP). It ensures that records of the individual financial transactions are correct, up-to-date, and comprehensive. In modern accounting systems, bookkeeping is processed by computer software.

-Bookkeeping and accounting are not the same processes.

-Bookkeeping is the recording of a firm’s financial transactions which usually involves only the recording of budgetary events.