why is documentation important in business transactions

Every business around the world has a period of time in which all their documents must be kept, the period is usually five years, and I believe banks keep them for a bit longer like 7 years. Now that we’ve covered why documentation is important, it’s time to look at the how to get started, and what formats you can use. These documents are evidence that transactions occurred. All this has to do with what business was conducted and what transactions took place and what profits, if any were made in between that period of time. Business documents may be digital, occurring as electronic files, or they may come in physical form, written or printed on paper. In order for your staff to be able to use your documentation, you need to create it in a format that is easy to use, edit and access. Documenting is usually done on paper or online with explanations as why a certain decision was made over others. Customers * Documentation is necessary to help your customers understand how to get started using your product. Contracts serve as a gateway through which your venture can enter new markets and expand its reach; other paperwork validates your current position and provides assurance to your investors and customers. TL;DR: Documentation is VERY important! Documentation is important to any system implementation, and an accounting system is no exception. When working in another country, it is essential to understand any legal issues as they pertain to your business. Tips for Effective Documentation. Print Friendly. Business documents are files that provide details related to a company's internal and external transactions. Contracts If your company is offering a service, ideally you should have a contract for every client you provide work to. A source document is any document you create or receive in the normal daily running of your business. The importance of proper business documents. It’s important to keep a record of the work you’ve done and the business agreements you’ve made in case you or the other party has a question about it at a later date. I think this is an oversimplification of documentation, and when, where, and why it's important to a project. These records are made up of government and legally mandated elements, documents required by company policy and practice, documents suggested by best human resources practices, and formal and informal record keeping about employment events. Documentation tells the story of a business; its origins, intent and the journey it's taking to achieve its ambitions. Melissa Crownhurst shares in this systemHUB workshop how documentation helped her sell her business with an added value of $20,000 due to the documentation … Some common examples of business documents include letters, invoices and order sheets. Documentation in your business is the key to scaling and growing from small business owner to something bigger. Documentation is the written and retained record of employment events. I live in the land of client services, where every project involves a new set of stakeholders, participants, audience types, and overall business objectives. Use an accessible and simple format. They are sometimes referred to as the “paper trail”. The newest programs available allow you to scan receipts, tax returns, checks, and other documents and file them away - without the need for a bulky filing cabinet filled with papers and labels. Files that provide details related to a company 's internal and external transactions a certain decision was over! The “ paper trail ” accounting system is no exception have a contract every! The key to scaling and growing from small business owner to something bigger essential to understand legal! Is an oversimplification of documentation, and when, where, and when, where and! Contract for every client you provide work to to any system implementation and. 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