Transactions and Source Documents

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At the heart of bookkeeping are transactions - any event that affects your company's finances. These could be sales, purchases, payments, or receipts.


Every transaction needs a source document as proof. Common source documents include:

  • Receipts: For cash transactions
  • Invoices: For sales or purchases on credit
  • Credit card slips: For card payments
  • Purchase orders: For ordering goods or services
  • Payroll records: For employee compensation


These documents are crucial for several reasons:

  1. They provide a paper trail for auditing
  2. They help in accurately recording transactions
  3. They serve as legal proof in case of disputes


Proper organization of source documents is key. Consider using a digital system to store and categorize them. This not only saves space but also makes retrieval easier.


Remember, the accuracy of your books depends on the reliability of your source documents. Always insist on proper documentation for every transaction!


Edited by: Karla Pacheco



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