What term describes the process of recording financial information in a prescribed manner?

The term that describes the process of recording financial information in a prescribed manner is bookkeeping. Bookkeeping involves systematically documenting financial transactions, which can include sales, purchases, payments, and receipts, in accordance with specific rules and standards. This process is critical for maintaining accurate financial records and is foundational for later steps such as accounting and financial reporting.

The term implies adherence to consistent methods, which ensures that the financial data is organized and accessible for analysis. It serves as the groundwork upon which more complex financial activities, such as auditing or financial analysis, are built. Understanding bookkeeping is essential for anyone involved in finance or accounting, as it lays the groundwork for ensuring that financial statements reflect the true financial position of an entity.