A sales order is raised when an order is received from a customer. It will normally contain information about the goods that have been sold, prices, deliver times and any special requirements or notes. A copy of the sales order will also be sent to the accounts office so that they will be able to raise a sales invoice once the goods have been despatched.
Jun 052007
Jun 052007
In a larger business, a goods received note (GRN) is generated whenever a delivery is made to the business. The GRN details what goods and quantities have been received and when. A copy of the GRN is sent to the accounts department to enable them to match it to the purchase order (that would have been raised when the goods were originally ordered from the supplier).
When the invoice is received, this is matched to the purchase order and GRN. Only if the details on all three match up, is the invoice paid.
Jun 042007
A business raises a purchase order when it wishes to order goods from a supplier. Details of quantities, prices and possibly delivery times are detailed on the document which is then sent out to the supplier. A business often numbers it’s purchase orders so that it can be cross-referenced to the goods and invoice when they arrive. A business keeps a copy of the purchase order for itself. If it is a larger business, a copy is sent to accounts and a copy is held by the purchasing department.
Jun 042007
The source documents are the paper (or electronic) record of all the businesses transactions. These documents are then recorded and summarised as part of the bookkeeping and accounting process.
Examples of source documents are: sales order, purchase order, invoice, credit note, goods received note, bill of lading.
It is vital that a business keeps copies of all its source documents as evidence for audit and/or the inland revenue.
Not every business produces or needs to produce all the different types of source document. For instance, a service industry is unlikely to have a “bill of lading” as there is no physical product to ship.
Jun 012007
The idea behind business networking is that people are much more likely to act on a personal recommendation. Networking can be a fantastic way of marketing your business; however, it can also be a great way to find good suppliers and colleagues in the same line of business with whom you can compare notes.
As an accountant, I am horrified by the thought of going out and “making a sale” but networking can be a gentler way to promote your business positively. Indeed, networking is not about “hard sell” and trying to sell at networking events is not really the done thing.
The results of networking are not always instant. In fact, it can take weeks or months (depending on your product or service) to see the benefits, as referrals often take time to filter through to a person who is interested in your offering.
There are many national and international networking organisations, such as BRE and BNI. The Federation of Small Businesses also runs local networking events. There are also countless independent networking groups including ones for women only, such as the women’s networking company.
Some networking organisations only allow one company per category (eg only one firm of lawyers etc…).
Some have highly structured agendas (such as BRE and BNI) and others are more free form. Speed networking is also on the increase. As the name suggests, such events are structured to allow 2 to 5 minutes for intense networking between two people before each moves on.
The best thing to do is to try a few different events and see what works best for you.
