Bookkeeping Categories for Small Businesses is a system of recording, tracking and maintaining financial records. This process involves categorizing all income, expenses, assets and liabilities into specific sections to ensure accuracy, compliance and complete visibility of the business’s finances. It also helps small businesses keep their books organized, maintain internal control over their money, and meet legal obligations, like filing taxes and reporting financial results. With bookkeeping categories in place, small businesses are better equipped to understand their overall financial performance and make data-driven decisions.