10/06/2019
Do you know what BOOK KEEPING DOCUMENTS to use for your business? Take a look below
ENSURING TRUST AMONG BUSINESS STAKEHOLDERS
As we noted in the previous post, proper book keeping facilitates trust among different stakeholders in a business. But what are these book keeping documents are how and when are they used?
Here are some of the common documents you need for your business
1. RECEIPT (General/Cash Sale) - used to acknowledge any cash/cheque received on behalf of the business. Note the keyword (RECEIVED), so services or goods sold on credit must not be captured on this document until the cash is received. It is also important tot note that however small a transaction maybe, always issue a receipt (even when the customer is not interested), this helps to optimally track your sales for easy decision making
2. INVOICE - used to document sales on credit. Even when the client promises to pay the next day, always issue him/her an invoice so that you do not forget about the transaction. The Invoice always goes hand-in-hand with the DELIVERY NOTE
3. DELIVERY NOTE - helps to acknowledge delivery of goods/services and therefore must always be signed by the client. Once you issue a Delivery Note, make sure you sign a GOODS RECEIVED NOTE issued by the client as evidence that your goods/services have actually been received.
4. GOODS RECEIVED NOTE - acknowledges receipt of goods/services from your suppliers. Records on this document must match records on Delivery Notes of your suppliers
5. PAYMENT VOUCHER - We always spend on our operations in the business and therefore need to have clear records of all expenditures, a purpose for Payment Voucher. To ensure accountability, always attach supporting documents (receipts from suppliers, payment sheets, acknowledgement receipts - only if there is no option to get a receipt)
6. PROFORMA INVOICE - Has anyone come to inquire about the pricing of your goods and services? How did you provide the information he/she needed? Proforma Invoice is the best document you should have used. This always projects professionalism on your part to your clients/prospective clients
7. LEDGERS AND BOOKS - to be discussed in detail tomorrow