To record the financial affairs of a business.
So, basically, it’s organising and systemising the details of what happens in your business. It’s about capturing the bits of information on papers that float around your office, the car, the dog’s bed … and getting it all into one, organised system. It’s really a record of the incomings and the outgoings in the business.
The bookkeeping is like the bones that holds the body together, and the accounting is the skin that keeps it all in. (We hope you’re enjoying the visual that analogy created.)