All business transactions require paperwork, called source of documents. Business source documents, which are important to bookkeeping, need to be standardized. With standardized source documents, the bookkeeper can easily identify and interpret the relevant information.
Invoice is a commercial document issued by a seller to the buyer, indicating the products quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms . It is important in the business to have an invoice for the reason that it gives sufficient information of the flow of operation in the business. A relevant evidence to ensure to keep good books and records but the most important reason is to ensure having a control over your business and that you can assess its profitability and the cash flow situation therefore you are aware of any potential problems as soon as possible and can make business decisions with all available information at hand.
Wednesday, February 10, 2010
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