Source Documents
Source Documents
These documents provide proof that a transaction has occurred. They are the original records that provide evidence of a transaction. They are crucial in the bookkeeping process as they serve as the foundation for all financial data entry and analysis.These documents are used to track and verify transactions, ensuring accuracy and transparency in the accounting records.
Common Types Of Source Documents:
Invoice
A business document showing the names and addresses of the buyer and the seller; the date and terms of the sale; the description, quantity, unit price, and total price of goods purchased or sold and the method of delivery.
Selling business refers to this document as a Sales Invoice.
Buying business refers to this document as a Supplier Invoice.
Receiving Report
A document originated by the buying business listing the quantities and condition of the goods and/or services received from a supplier.
Sales Order
A documented originated by the seller listing the goods and/or services ordered by a customer and other information such as prices and delivery dates.
Purchase Order
A document originated by the purchaser (buyer) requesting the supplier to ship goods or perform services.
Receipts
Receipts are issued by a seller to a buyer as proof of payment received for goods or services. They typically include details such as the date, amount, and method of payment.
Check Book
Formal record of all checks written, deposits, bank charges, and miscellaneous charges and credits.
Check
A written order directing a bank to pay cash from the account of the writer (drawer) of the check.
Bank Reconciliation
The process of bringing the checkbook and bank statement balances into agreement.
Bank Statement
A copy of the bank’s record of the business’s account showing the balance of the account at the beginning of the month, the deposits and withdrawals (mostly checks) made during the month, service charges, and the balances at the end of the month.
Tax Returns
Returns filed with government agencies.
Payroll Records
Payroll records document employee compensation, including wages, bonuses, deductions, and taxes withheld. These records are essential for calculating payroll expenses accurately.
Expense Reports
Expense reports detail business-related expenses incurred by employees for reimbursement purposes. They provide documentation for tracking and recording business expenses.
Loan Documents
Documents that provide details about a loan such as interest rate and payment terms.
Contracts-Contracts outline the terms and conditions agreed upon between parties involved in a transaction. They serve as legal source documents for financial transactions.
Source Documents