Sell Source Documents Accounting Definition

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What is the source document for EFT?

A source document describes all the basic facts of the transaction, such as the amount of the transaction, to whom the transaction was made, the purpose of the transaction, and the transaction date. Common source documents include: Canceled checks. Invoices.

What is the purpose of the source document?

The source document is a good internal control and provides evidence a transaction occurred. Providing source documents to your bookkeeper or accountant in a timely manner assists them in preparation of financial statements and accurately analyzing your business activity.

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