Final answer:
Bookkeeping involves the systematic recording of financial transactions, crucial for accurate financial management, preventing overdrafts, and assisting in budget control.
Step-by-step explanation:
Bookkeeping is the systematic recording of financial transactions and is an essential part of financial management. It helps to track income and expenses, ensuring that all monetary operations are accurately documented. Bookkeeping is crucial for maintaining up-to-date financial records, which aids in managing cash flow, preventing overdraft fees, and managing budgets effectively.