Transaction is an agreement carried out between a buyer and a seller and it is the exchange of an asset or product for a particular amount or for another asset. It is the most crucial element of a business as it is the last stage of any transaction. Transaction of money can be made in various ways that are available today. There are many types of transactions. One should know how to make the transaction and which is the easiest and risk-free method. One should also know the maintenance of transaction logs regularly to avoid confusion and to maintain error-free accounts.
Q. Do you know what the different types of sample transactions are?
Q. Which transaction is risk free?
Here are some tips from Kuza Biashara, on different types of sample transactions:
Every organization should maintain a transaction log to understand your income and profit better. Maintain account books manually or on the computer; keep a track of the number of items you sell and also a track of the payment you receive. Transaction logs have to be up to date for ensuring smooth and efficient running of a business. Always have a backup for your transaction logs, to ensure that there is no loss of data. If you save data on the computer, have backup of the same data saved on USB or other hard drives. If your account books are written manually, maintain an additional book as backup.
When you sell an asset or product for set a financial value, payment can be received in various ways.
The different ways of making payments or types of transactions are:
It is the most easiest and guaranteed form of payment. One can just accept cash as payment for an asset or product sold. It is also the oldest and most traditional way of making payments.
If an asset sold is very expensive, then the amount normally cannot be given in cash. When there is a huge sum to be paid or received, its better to do it by cheque to complete the transaction. But, a cheque can be risky. If a cheque is given without any cash in the bank, the cheque bounces and you will not receive your payment. Even if the cheque bounces, it can still act as a proof of evidence, that a party owes you some amount.
Credit and Debit Cards
Its known as plastic money. The old methods of payment – cash and cheque is changing into payment by swiping credit or debit cards. When you swipe a credit or debit card, money is directly transferred from the customer’s account into your account. It is safe to transfer money through credit or debit cards, as when you swipe a card it will automatically let you know if there isn’t enough credit in your customer’s account.
Transactions constitute the heart and soul to any business. It is very crucial that one needs to know about the various options available. Having knowledge about various types of transaction options, will avoid making simple mistakes. But with the advancement in technology different types of transactions and payment methods like plastic money are being used widely across the globe. Research on what is the most comfortable payment method for customers and adopt that method.