Bookkeeping is an essential aspect of running a small business. It involves the systematic recording, organizing, and tracking of financial transactions. Bookkeeping helps small businesses maintain accurate financial records, monitor cash flow, and make informed business decisions. Key tasks in bookkeeping include recording income and expenses, reconciling bank statements, managing accounts payable and receivable, and preparing financial statements. Small businesses can choose to handle bookkeeping in-house or outsource it to a professional bookkeeper or accounting firm. Proper bookkeeping ensures compliance with tax regulations, helps with budgeting and forecasting, and provides valuable insights into the financial health of the business.