Bookkeeping is a part of the accounting process that deals with recording financial transactions in a systematic manner. It involves identifying transactions of financial nature, recording them in the books of accounts, and classifying them into ledger accounts. The primary objective of bookkeeping is to record financial transactions in an orderly or systematic manner. Other objectives of bookkeeping include summarizing transactions in a chronological order, providing financial information to both internal and external users, and detecting potential errors in recording information. Bookkeeping is important for external users, including investors, government, and other financial institutions, as it provides them with reliable information that influences decisions related to lending and investment. Bookkeeping can be of different types, the most common ones being single entry and double entry bookkeeping systems.