Type of Documents Involved in the Accounting Process
The process of accounting is like a religious ceremony, it involves a lot of time and effort. Since finance is the religion of business, taking meticulous care for it lets then avoid the eternal damnation of bankruptcy. Documents that aid the process of accounting come in different forms and listed below are its types and uses.
- Invoices and Receipts: Financial transactions happen every day and recording them is one of the habits that businesses do in order to keep it thriving. Invoices and receipts are the basic documents to record daily transactions such as sales and credit.
- Journal Entries: Like diaries, journals record everyday transactions such as sales and expenses in a single, yet compact package. The items on its entry include the amount of cash earned and spent, the date of the transaction, and the name of the transaction itself. Also, these items are compiled from the information found in individual invoices and receipts issued during the transaction.
- Financial Statements: The summary of your business's overall health is called a financial statement. Your financial statement will detail your earnings and expenses, debts, and receivables from which profit are drawn. And, all the items summarized and detailed in your financial statement are from the journal entries that you compiled every day.
Pick and Choose From a Gallery of Accounting Document Samples
Accounting is one of the tools that will help you in ensuring that your business is in tip-top shape. In fact, a financial audit is the accounting process spelled in a different way. Maintain a fit and healthy business. Grab one of our accounting document samples now!