Importance of proof of the transaction

As businessmen, surely you've very often expend funds for operational purposes or non-operational. But the question here is, do you always ask for proof of a transaction for any purchase done?

Although for some people the existence proof of a transaction or a sheet of notes do not have great meaning for each purchase transaction they do, but for entrepreneurs the existence proof of transaction became one of the instrument amplifier for each financial statement that they write.

Because, when it was about to draw up financial reports Efforts, turns out to be not only the discipline the perpetrators attempt just to note so that the report can be drawn up Assured of its accuracy. Referring to the "Conservative Principles" that is, the principle that upholds the prudence, then one of the important points that could not be separated from the preparation of the financial statements items, namely the existence of evidence of the transaction.

The intended transaction evidence here is evidence can be preserved, a stroke of purchase, receipt, invoice, slip, or memo which stated that there had been a transaction between the two parties (buyer and seller) that is causing the displacement of a number of funds or goods.

Importance of proof of the transaction

Well, to know the importance of the evidence of transactions in the financial statements. On this occasion I will share approximately ease whatever brings the perpetrators attempt when attaching evidence of transactions in the financial statements which he arranges.

In accounting, a transaction could not be considered valid if it does not have evidence of a transaction that is quite clear. Therefore, make it a habit to ask for notes, receipts, or evidence of other transactions to any transaction activity you do. Be it a large enough value as well as small transactions worth only tens of thousands of dollars.

In addition, evidence of the transaction also help businessmen when facing a financial auditor. In this case, evidence plays an important role as a means of correction to match between the records of financial transactions are written with evidence of transactions.

Which belonged to your company. usually these conditions faced by business when it wanted to employ those investors to inject additional capital into the company.

And lastly, as a means of proof at any time when needed For example, proof of purchase such as a laptop or mobile phone company, which requires proof of a transaction as one of the terms of the warranty card replacement if at a later date the goods suffered damage.

After learning the importance of a piece of evidence in compiling financial reports efforts, hopefully in the future we can get more discipline to complete any purchases or sales of products with a single piece of evidence of a valid transaction.

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