Basic bookkeeping is the process of recording all your business transactions to produce a set of accounting records. Bookkeeping is the start of an accounting process which allows you to produce useful accounting information about your sales, expenses, assets, liabilities and equity.
The bookkeeping process begins with the use of debits and credits to record accounting transactions. At the end of an accounting period these transactions form the basis of producing a trial balance and subsequently the income statement, balance sheet, and cash flow statement.
It is important to remember that the business is a completely separate accounting entity from you the owner.