Key Financial Verifiable Documents

Invoices

• Two main types:
  • 1 Supplier Invoices: proof of purchases; list goods/services and costs.
  • 2 Customer Invoices: record sales; state items sold and amounts due.
• Issued before payment; function as a request for payment.

Receipts

• Two main types:
  • 1 Payment Receipts: evidence of amounts paid to suppliers/service providers.
  • 2 Sales Receipts: confirm cash received from customers.
• Issued after payment; serve as proof of payment.

Bank Statements

• Record all deposits, withdrawals, and transfers in a bank account.
• Essential for account reconciliation and verifying cash balances.

Contracts and Agreements

• Detail terms and conditions of business transactions.
• Provide legal basis for confirming legitimacy and specifics of transactions.

Purchase Orders

• Management-authorized documents approving purchases.
• Specify items and costs; matched with supplier invoices and delivery notes.

Delivery Notes and Shipping Documents

• Confirm dispatch or receipt of goods; usually signed on delivery.
• Used to verify that ordered goods have been shipped/received.

Importance and Benefits of Verifiable Documents

• Audit Trail: support financial audits and reviews.
• Dispute Resolution: supply evidence in case of discrepancies.
• Financial Management: enable accurate records, budgeting, and planning.
• Overall: uphold financial integrity, ensure compliance, and guide informed decisions.