#Oncework source full#

After the initial recording, all documents should be preserved and organized into a file and put into a system so they can be retrieved at any time. In its simplest form, a source document generally contains the following information:Īny information generated through source documents should be properly recorded in either the company’s journal, accounting software, or financial books. Overall, to run a business more smoothly and enhance transparency, all its source documents should be kept and stored for future reference.

#Oncework source full#

In order to reaffirm the accuracy of the company’s balances in individual accounts, auditors need full access to all the documents. When companies undergo an audit, the auditor’s access to a clear and accessible paper trail of all transactions enhances the overall legitimacy and independence of the audit.

In addition, source documents are also essential in the auditing process. Nowadays, these documents do not necessarily need to be a physical hard copy – they may be in a traceable electronic form. Source documents are, first and foremost, important to the bookkeeping and accounting process because they serve as physical evidence that a financial transaction actually occurred. Whether checks are written to be paid out, sales are made to generate receipts, billing invoices are sent by suppliers, or work hours are recorded on an employee’s timesheet – all the respective documents are source documents. This paper trail is referred to in accounting as source documents. Every time a business is involved in a financial transaction, a paper trail is generated.