Business LO3

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Purpose, interpretation and completion of business documents
In all businesses there is paperwork, whether this on paper or purely digital does not matter but forms need filling, and accessing for all sorts of reasons.
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Transaction documents
These are drawn up by companies in order to pay for or get something from another company. They are stored on record in order to check against taxes, the balance sheet and cash flow documents
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Purchase order
This is a document drawn up in order to process the purchase of something for the company. For each business this will be different
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Purchase order continued...
e.g. a school will buy books, the document will be sent to finance, finance will check with the bank to verify the funds, the document will be processed and then signed before being sent through
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Invoice
The receipt for goods purchased, usually contains all the relevant details such as price, tax, item number, date or purchase and company details.
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Invoice continued...
all these items are there for a reason and again this is stored away for use against the cash flow statement and balance sheet. Some companies also use these to claim back the tax on items, just as customers use them in case the goods and need return
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Credit note
This is a note given to a company in lieu of payment. It gives the bearer the right to purchase on credit to the sum of money on the note and can be given in case of payment being late or as a gift to increase future sales.
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Statement of account
In accountancy terms a statement of account is a record of how much money is currently in the bank account for companies to sue that included current and previous purchases that have been processed up to that point.
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Travel expense claim form
A form created by the company so that staff can claim back travel expenses after the trip has taken place as long as the trip was company related. This could include taxi fares, train tickets or flights. These need to be accompanied by a receipt
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Incident report
Written by staff after an event like an accident or argument with another employee or customer. This should include details of the incident or accident including time, date, who was involved and what action was taken.
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Leave of absence form
This is a legal document written by a member of staff to say why they are planning an absence so the company can use this to hold back pay, to prepare a replacement or make plans. Details should include purpose of absence, length and return date
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Petty cash voucher
A waiver for a small amount of money that is needed for a one off event such as a bus fare or food needed now such as food for a visitor in interview.
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Petty cash voucher
This voucher is taken to the person who is in charge of petty cash and money is given in replacement for the voucher. It will include things like amount needed, purpose of need, department used for
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Stock requisition form
A form filled in to request stock such as ink for a printer, pens, staplers etc. This is held and often deducted against a department budget or allowance and saves time. It will include things like stock item, number, room location, budget code
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Reprographics requisition form
This is a sheet filled in and handed to the reprographics people in order for photocopying to be done by them. It is given with the pages to be copied and includes items such as duplex, paper size, number of copies, when needed and if needs stapling
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IT requisition form
This is used to request equipment such as Laptop Banks, projectors, sound recording equipment etc, so that the equipment can be checked and prepared before usage. It will include details such as equipment, time needed, length needed, room number
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Abbreviations
E&OE- Errors and omissions expected is a phrase used in an attempt to reduce legal liability for potentially incorrect or incomplete information supplied in a contractually related document such as quotation of specification
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Abbreviations
T&C- Terms and conditions- this means there may be reasons why sums may not be paid or goods cannot be returned such as damage done or insufficient funds met
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Abbreviations
COD- Cash on delivery- means goods have to be paid for when delivered
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Abbreviations
Terms 30 days- payment has to be made within the allotted time, usually up that period is allowed before returns are expected
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Abbreviations
Others include: ASAP- as soon as possible, ETA- estimated time of arrival, FYI- for your information, NRN- no reply necessary, OTC- over the counter, RRP- recommended retail price, VAT- value added tax
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Bank statement
This is the printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account. It contains details such as Account number, incoming and outgoings
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Budget variance report
Presents the planned costs versus actual costs or planned revenues versus actual revenues variance at a given date, broke down by the staff members roles and expense types
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Delivery note
A document that accompanies a goods shipment and lists details about the good delivered, including what the contents of a package are. If some goods that were ordered are not enclosed they will also be listed on the delivery note
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Variance analysis
Detailed budgets are used to compare actual figures with the budgeted ones. A variance in budgeting is the difference between the budgeted figures and the actual figures.
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Variance analysis
It can give a timely warning that something may be going wrong, while there is time to take action and make changes. Calculations required (absolute and in percentage terms) when interrupting a budget variance report.
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Variances
Variances can be favorable or adverse. A favorable variance is one where the actual figures are better than the budgeted ones. An adverse variance is where the actual figures are worse than the budgeted ones.
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Using budget to manage effectively
Different businesses use variances in different ways. Large businesses will have very complex budgets because they have many departments. Variances offer managers a way of observing trends and events. How they react depends on the culture of the comp
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Using budget to manage effectively
An autocratic leader can use variances to keep very tight control of everything that goes on.
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Using budget to manage effectively
A more democratic approach would involve departments in the setting of targets, and foster discussion about how improvements can be made. This would be more in tune with measures to promote continuous improvement.
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Goods received note
Record of goods received at the point of receipt. This record is used to confirm all goods have been received and often compared to a purchase order before payment is issued. Items include Product, Code, Number of products in the delivery, time, date
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Payslip
A not given to an employee when they have been paid, detailing the amount of pay given, and the tax and insurance deducted. This includes name, National Insurance Number, Rate of Pay, Deduction and addition (time off, overtime and overtime rate)
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Receipt
A receipt is a written acknowledgment that a person has received money or property in payment following a sale or other transfer of goods of provision of a service. There is usually no set form for a receipt, such as requirement that it be machine
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Remittance Advice Slip
A document sent by a customer to the supplier of a product or service informing the supplier of the payment of their invoice or bill. This slip is typically included by the costumer along with their payment check and could also be attached
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Request for Repair Form
A form sent with goods or a request to attend to goods, premises or room to repair something in place or take away. E.g. a maintenance request to remove or fix broken chairs in a classroom. Details include room, item, class, reason for breakage
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Cheque
This is an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form. Can include name, account number, signature, bank details and possibly a magnetic ink number
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Credit card
A small plastic card issued by a bank, building society, etc, allowing the holder to purchase goods or services on credit. Contains details such as Name and Bank number, a magnetic ***** and a chip with personal account details
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Debit card
A card allowing the holder to transfer money electronically from their bank account when making a purchase. Has less purchasing power than a credit card. Has similar features of a Credit Card
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Credit and Debit Card difference
A debit card is not a credit card. When you use a debit card, the money is deducted from your checking account. With a credit card, your'e borrowing money to be repaid later
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Online/digital payment methods
An online payment system facilitates the acceptance of electronic payment for online transactions. Also known as a sample of Electronic Data Interchange (EDI), online payment systems have become increasingly popular due to widespread of inter-based
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Bank payments
These are payments made from a user directly to a company through a bank payment (C2B) or transfer from a company to company of money for payments (B2B).
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Paying in slip
When a person wants to deposit checks or cash in their bank account they fill out a slip to show the number of his/her account, the date, and the details of the deposit and give it with the payment to the bank or through the cash machine in the bank
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Electronic Transfer
This is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff
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Purpose
All these meetings require some form of documentation to show they happened, to action tasks and to outline points to be made and discussed for use later. Checking these improves efficiency, readability and sets a tone for the meeting
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Completion
Documentation needs to be kept as evidence of duties carried out. They may not be a permanent record but they are often shared with SMT (Senior members of staff) as a formal method of demonstration.
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Notice of meeting
This can be in the form of a message, notice board note, digital calendar reminder or email, and contains details such as what the meeting is about, who should attend, where and when
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Agenda
This is a list of points expected to be discussed at the meeting so that staff can prepare their own points to be made. It is a guided list of the order things will be discussed and includes Purpose, Attendees, Points, Location and Timing, AOB
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Minutes
This is a written list including details of what was said at the meeting, points made and by whom, decisions made and action points. This is written for all attendees so they can have a formal document of attention and actions
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For delegates
(e.g. publicity, invitations, joining instructions, evaluation forms)- these will be varied depending on the conference but will always include times, room numbers and expectations and therefore they will have to be checked for consistency, quality
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For staff
(e.g. help sheets, attendance register)- these will need to be more precise in their details as they are used as a formal means of business, they will need to be used and filed for payment and training purposes as their accuracy may be less important
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For presenters
(e.g. prompt cards, slides)- these need to be checked for quality as presenters may not return, they need a high degree of accuracy and be easy to read and understand as presenters can vary in technical and professional ability
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Other cards in this set

Card 2

Front

These are drawn up by companies in order to pay for or get something from another company. They are stored on record in order to check against taxes, the balance sheet and cash flow documents

Back

Transaction documents

Card 3

Front

This is a document drawn up in order to process the purchase of something for the company. For each business this will be different

Back

Preview of the back of card 3

Card 4

Front

e.g. a school will buy books, the document will be sent to finance, finance will check with the bank to verify the funds, the document will be processed and then signed before being sent through

Back

Preview of the back of card 4

Card 5

Front

The receipt for goods purchased, usually contains all the relevant details such as price, tax, item number, date or purchase and company details.

Back

Preview of the back of card 5
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