The balance of payments (BOP) records all economic transactions between a country and the rest of the world over a period of time. It uses a double-entry bookkeeping system to systematically track transactions such as imports, exports, investments, and financial flows between residents of a reporting country and foreign countries. Maintaining an accurate BOP is important as it allows governments to analyze the state of the economy, detect economic trends, and judge the short-term economic and financial status of a country in relation to international trade.