Generally, there are four main types of financial transactions that occur in a business, namely:
- Sales are contracts between buyers and sellers of certain goods or services. Sales transactions are available in the accounting journal for the seller as a debit to cash or receivables and a credit to the sales account. To simplify the sales process, use sales software for your business. It can helps you to optimize cash flow through timely billing of clients and calculate sales commissions accurately based on sales targets.
- Purchases are required by businesses to obtain goods or services needed to achieve organizational goals.
- Receipt refers to written evidence that a person has received or has a certain amount of goods or money.
- Payment is a transaction that refers to a business receiving money for goods or services