8 Common Accounting Documents That You Should Know About
The accounting world is a complicated and confusing one, and that’s why not everyone’s fit to be an accountant. Fortunately, this doesn’t mean that only accountants get to enjoy the benefits of understanding the numbers. You can hire an accountant and get them to help you with all your financial needs, keeping your money managed, ensuring your debts stay in check, and so much more.
That said, despite being able to hire an accountant, it still pays to know what kind of accounting documents there are to better understand what they mean to you! There are many different types of accounting documents that you can use to track their finances, and here are some of the most common types of accounting documents that you should be aware of:
An invoice is a document that is issued by a business to another business or individual, typically in exchange for goods or services that have been provided. An invoice typically contains the date of the transaction, the quantity and type of goods or services that were provided, the unit price of each item, and the total amount due.
A bill is similar to an invoice but is typically issued by an individual to a business. Bills typically contain the same information as an invoice but may also include additional information such as the due date and method of payment.
A receipt is a document that is issued by a business to an individual in exchange for payment. Receipts typically contain the date of the transaction, the amount paid, and the method of payment.
A statement is a document that is issued by a business to an individual or another business on a periodic basis. Statements typically contain information such as the date of the statement, the period covered by the statement, the balance owed, and the due date.
A check is a document that is used to make payments. Checks typically contain the date of the transaction, the payee, the amount of the check, and the signature of the person writing the check.
A deposit is a document that is used to record money that has been received. Deposits typically contain the date of the transaction, the amount of the deposit, and the source of the deposit.
A transfer is a document that is used to move money from one account to another. Transfers typically contain the date of the transaction, the amount of the transfer, and the account to which the money is being transferred.
A voucher is a document that is used to record a specific transaction. Vouchers typically contain the date of the transaction, the amount of the voucher, and a description of the transaction.
These are just some of the many important documents that an accountant works with to give you the information that you need to make the right decisions. So, now that you know what they are and what their purpose is, you can look at the proper documents to know how your business is doing and what you must do next to keep your company growing!
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