What is a business transaction?

Business transaction is the exchange of valuables that affects the financial situation of the company, such as the exchange of money for goods or services. It is a basic activity that defines the state of business in business. Accounting is the process of making records of all business transactions over time, which is located in categories for tax purposes. Transaction record consists of documents supporting stock exchange and accounting accounting that introduce the stock exchange into categories that the accountant can later summarize for financial reporting. This process serves as a basis for many legal obligations, especially in terms of taxes. Although Conducts's business and managing their accounts are its own decision, tax authorities usually require an enterprise to keep transaction records that are current with sale. This means that it is unlikely to be sufficient to restore the sales record at the end of the year if the authorities are audited. The posthumous creation of trade transactions canbe illegal when bound to an attempt to cheat on the government.

National and local governments can assess taxes on sales and income that are entirely dependent on the fact that the company correctly shows all income and illustrates messages using a business transaction record. Transaction monitoring usually means providing records of shopping orders or invoices generated and accepted and all issued sales confirmation. In the retail environment, the customer is likely to place the order in person and receive the paper as a confirmation of the purchase. The store also generates a copy of the confirmation that is kept in its system.

Particularly, turnover tax is so important for governments that they evaluate this type of tax, that they pay special attention to companies that trade mostly in cash. A business transaction may include cash payment, check or electronic method, such as credit or debit card orThrough a third -party facilitator over the Internet. Cash payments are the only type of payment that does not leave an automatic paper trail. As a result, cash companies are favorite vehicles for avoiding tax and money laundering.