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Business Documents Used In Accounting

Since business transactions entail money, accountants make use of different business documents to make their transactions on track.

There are number of these business documents used in accounting that are used every day.

In every business, there are a lot of transactions that are happening and most of the time it includes money. That is why accountants are very important since they make sure that all transactions are properly made and there will be no further problems when it comes to customers and the company that they are working in. these are also used as evidence as well as for auditing purposes. Most of these are required by law.
Considering the works of accountants, we can see that they are making use of different business documents which make their work in proper order. According to ezinearticles.com, here are some of the business documents that most accountants are using.

  • Quotation

    In business, this is a written agreement that is made by a producer addressed to target potential customers. Commonly, this is for the purchase of goods as well as services. Here we can see the price as well as the quantity that is being sold. .

  • Purchase order

    This is another written order that is used by accountants. It is basically used in giving authorization to someone especially when it comes to purchasing goods as well as services which come from the supplier.

  • Sales order

    Sales order is also known as SO. This is known to be an internal document which is generated from the purchase order of customers. The main reason why such document is generated I the fact that it is used in creating an audit trail/control especially in monitoring sales process. This is in accordance with the numbering system of a certain company.

  • Credit note

    Such business document is the document which is being sent by a supplier to a customer. The main purpose of such document to suppliers is basically seen in reducing the liability of their customers. For the most part, this is a negative invoice. This is so because it is used for returned goods, overpayment and other unlikely circumstances.

  • Debit note

    This document is the one which is sent to a supplier from a customer. This serves as a request for a credit note especially if there are overpayments as well as return of goods.

Other necessary business documents that are being used by accountants are invoice, receipts, goods receipt note, and goods dispatch note, etc.
 

All of these documents are very important in making sure that accounting process as well as audit trail is on track. In addition to this, these business documents are very important because it will not just serve as a proof that a transaction has occurred but it is also important in making data inputted in general accounting system.
 

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