Small business bookkeeping for sole proprietors involves tracking and recording all financial transactions, such as income, expenses, and payments, to maintain accurate financial records. It includes managing accounts payable and receivable, categorizing expenses, and reconciling bank statements to ensure the books are balanced. Proper bookkeeping helps in preparing for tax filings, understanding cash flow, and making informed business decisions. For sole proprietors, it's crucial to separate personal and business finances to avoid confusion and potential tax issues. Regular bookkeeping also provides a clear financial picture, aiding in business growth and financial planning.

Bookkeeping for corporations involves maintaining detailed financial records, including tracking income, expenses, assets, and liabilities. It includes managing payroll, accounts payable and receivable, and ensuring compliance with tax laws and corporate regulations. Accurate bookkeeping is essential for preparing financial statements like balance sheets and income statements, which are crucial for stakeholders and investors. It also involves reconciling bank accounts and monitoring cash flow to maintain financial stability. Corporate bookkeeping requires adherence to specific accounting standards and often involves more complexity due to the larger scale of operations and regulatory requirements.