The Bookkeeping Basics Series 📣
Step 1
Gather source documents or original records for a transaction, like an invoice, sales order, or receipt. All of these documents have a date, buyer or seller, amount, and product or service that was provided. 🎯
Now, most people don't keep a physical copy of their source documents; instead, they rely on their bank statements to tell stories. 🎯
In most cases, the bank or credit card statements have all the information needed to specify a transaction. 🎯
But keep in mind that cash transactions are not recognizable using a statement alone. If you have a cash transaction, you have to retain the physical receipt to classify those transactions. 🎯
It is good practice to use a debit card or credit card to make a receipt for a payment. This way, you and a bookkeeper can rely mostly on your bank statements to classify transactions, making step 1 extremely easy. 🎯