Bookkeeping is the process of recording and maintaining financial transactions in a systematic and organized manner. Bookkeeping is the foundation of accounting and is critical to the accurate and timely preparation of financial statements.

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Bookkeeping involves the recording of financial transactions in journals and ledgers, such as the general ledger and subsidiary ledgers. The information recorded in the ledgers is then used to prepare a company's financial statements, including the income statement, balance sheet, and cash flow statement. Bookkeeping also involves the reconciliation of bank statements and the maintenance of accurate records of accounts payable and accounts receivable.

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Bookkeeping is an important function for any business, as it provides a record of a company's financial transactions and helps to ensure the accuracy of its financial statements. Accurate bookkeeping is essential for tax purposes and helps to prevent fraud and mismanagement. Bookkeeping is typically performed by an experienced bookkeeper or accountant, who uses a combination of manual and computer-based methods to maintain accurate and up-to-date financial records.

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