What term describes the clerical process of recording financial transactions?

The term that describes the clerical process of recording financial transactions is bookkeeping. This practice involves systematically recording all financial transactions made by an organization, which is foundational for maintaining accurate financial records. Bookkeeping ensures that every transaction, whether it be sales, purchases, income, or expenses, is documented in a clear and organized manner.

This process is distinct from accounting, which encompasses a broader scope, including the analysis and interpretation of financial data, preparation of financial statements, and overall financial management. Financial reporting refers specifically to the presentation of financial information to stakeholders, often through reports and statements that summarize the financial position of a business. Ledger management involves organizing and maintaining the individual accounts within the accounting system, but it is a subset of the broader bookkeeping process.

Thus, while all the options relate to financial processes, bookkeeping is specifically focused on the detailed recording of transactions.