Bookkeeping provides  primary information for accounting  activities and enables business owners to track financial activities which are important for assessing the financial performance of the company and for  policy and investment decisions, The bookkeeper records all financial transactions and an accountant analyses and interprets the records.

An effective bookkeeper must have the following skills namely: Mathematical skills, Skills for organization, diligence in paying attention to details, time management and transparency, ability to  keep and track daily records. Accounts are recorded basically in a single or double entry format.

Nevertheless there are basic types of accounts that should be kept whether recorded in a single or double entry format for the effective tracking of financial information in a business venture.