Money coming in.
WHAT TO RECORD
Every sale, whether paid immediately or not.
THE DISTINCTION
A sale made and a payment received are different events.
Record both.
WHY THAT MATTERS
Otherwise you cannot tell who owes you money.
WHAT TO RECORD FOR EACH SALE
Date Customer What was sold Amount Invoice number Whether paid, and when
FOR CASH SALES
Record immediately.
Cash not recorded the same day is forgotten.
FOR PAYMENTS RECEIVED
Match them to the sale.
Unmatched payments accumulate and confuse the position.
FOR GATEWAY PAYMENTS
The amount settled differs from the amount charged, because of fees.
Record the gross sale and the fee separately.
WHY
Otherwise your income is understated and your costs are missing.
FOR REFUNDS
Record them. Do not simply delete the original sale.
WHAT TO RECONCILE
Your recorded income against what reached the bank.
