Bookkeeping refers to the process of monitoring the financial transactions of an organisation or individual. Colloquially referred to as “keeping the books”, the process typically involves regulated and systematised parameters for reporting. However, a more general bookkeeping definition includes any process—regardless of the level of sophistication—of recording financial transactions.
Methods of bookkeeping vary and range from simple to complex. Specifically, maintaining the day-to-day financial records (such as sales, purchases, payments, receipts) define bookkeeper roles in a company. Using the bookkeeper’s records, a CPA is typically responsible for preparing and analysing a company’s financial documents.