Record Keeping and Business Documents: notes

Why Keep Records

• To know profit, control stock, prepare tax returns for ZIMRA, settle disputes and get loans.

Documents in Order of Use

• Quotation: the seller states the price of goods a buyer asks about.
• Order: the buyer asks to buy the goods.
• Delivery note: comes with the goods and lists what was delivered.
• Invoice: the bill sent by the seller asking for payment.
• Receipt: proof that payment was made.
• Credit note: sent by the seller to reduce the buyer's bill, for example for returned goods.
• Statement: a summary of all invoices and payments for a period.

Books of Account

• Cash book: records money received and paid.
• Petty cash: a small amount kept for minor spending, such as stamps or bus fares.
• Ledger: a book with an account for each customer, supplier or item.
• Balancing an account: add each side, find the difference and carry it forward.

Transactions and Safety

• Cash sale: paid at once. Credit sale: paid later.
• Trade discount: taken off the list price. Cash discount: offered for quick payment.
• Protecting records: keep copies, use a lockable cabinet and back up computer files.