Bookkeeping is crucial because it ensures that a business has accurate and up-to-date financial records, which are necessary for making informed business decisions, complying with tax laws, and preparing for audits.

Single-entry bookkeeping: A simpler method where each transaction is recorded once, typically in a cash book or journal.
Double-entry bookkeeping: A more complex system where each transaction is recorded twice, affecting at least two accounts (debits and credits). This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

Accurate bookkeeping ensures that a business maintains clear and complete records of all financial transactions, which is essential for filing taxes. Proper records help businesses calculate tax liabilities and comply with tax laws.

Bookkeeping can be done manually (using ledgers and books), but many businesses opt for automated bookkeeping software (like QuickBooks, Xero, or Tally) because it simplifies the process, reduces human errors, and saves time.

Bookkeeping should be done regularly, usually on a daily, weekly, or monthly basis, depending on the size of the business. It ensures that financial data remains accurate and up-to-date.

No, bookkeeping is the recording of financial transactions, while auditing involves reviewing and verifying the accuracy of those records to ensure they comply with accounting standards and laws.