What is Personal Accounting or Bookkeeping? Similar to how businesses rely on accounting for expense tracking, cash flow management, and profit & loss analysis, individuals must also monitor their monthly expenditures and plan for future cash flow. Personal accounting empowers individuals, particularly those with a fixed income, to oversee their earnings, expenses, and strategize for a financially secure and sustainable life with minimal debt. Why is personal accounting necessary? To manage expenses, debts, loans, and cash flow, individuals must either handle it themselves or enlist the expertise of an accountant who can provide monthly feedback. Many individuals earning above-average salaries in their industry still face financial challenges due to poor expense and debt management. Without guidance, they are prone to making incorrect financial decisions. Other advantages of personal accounting: Estimating net worth Creating accounting records for future needs Utilizing it during u