Business transactions

An insight into business transaction and the necessity of good recordkeeping

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A business transaction is a self-reliant business deal--for instance, buying a theatre ticket. Some business transactions--for illustration, buying a newspaper--are easy and short-lived. Conversely, many are not. Many occupy multiple actions that take place over an absolute period. For example, selling a vacation may occupy the travel agent in actions such as:

• Recording customer details
• Booking seats on an aircraft
• Booking a hotel
• Booking a rental car
• Invoicing the customer
• Checking for receipt of payment
• Processing the payment
• Arranging foreign currency.

 

Both the customer besides the inquire into element disturb the tenure of the vacation for a single business transaction, over positively de facto is, being each stunt unitary makes caliber domination the nuance of the plenary. The example illustrates some typical properties of complex business transactions:

• They tend to be made up of a series of logical actions.
• Some actions may be taken days, weeks, or even months after the transaction were started--arranging foreign currency, in this example.
• Some of the actions may be optional--not everyone wants to rent a car, for example.
• At any point, an action could fail. For example, a communications failure could mean that it’s not possible to book a hotel. In this case, the action must be retried. Or the customer might fail to meet his final payment; this would require a reminder to be sent. If the reminder produces no response, the vacation must be canceled--that is, the actions that have already been taken must be undone.
• Data--for example, a customer account number--must be passed between the individual actions that make up the business transaction.
• Some control logic is required, to "glue" the actions together. For example, there must be logic to deal with the conditional invocation of actions, and with failures.

 

 

A good recordkeeping system includes a summary of your business transactions.  Business transactions are ordinarily summarized in books called journals and ledgers.  For example, a recordkeeping system for a small business might include the following items. 

 

• Business checkbook
• Daily summary of cash receipts
• Monthly summary of cash receipts
• Check disbursements journal
• Depreciation worksheet
• Employee compensation records

 

Article Tags: Business Transactions

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