Every financial activity requires proper documentation and verifiable evidence. This is where transaction proof becomes vital—it acts as a record of every inflow and outflow of funds.
Without valid and well-documented proof, businesses may struggle to prepare accurate and trustworthy financial reports.
Understanding the different types of transaction proof, their benefits, and how to manage them efficiently is essential for smooth business operations.
So, what are the commonly used types of transaction proof? What are their specific functions, and how can you digitize them for better efficiency? Let’s explore.
Transaction proof is an official document that records the occurrence of a financial transaction between two or more parties. It plays a central role in a company's accounting system. Every transaction must be verifiable through such documentation.
It can be a physical or digital document containing details like the transaction date, amount, involved parties, and specifics of the goods or services exchanged.
Here are the most common types of transaction proof used in business activities:
An invoice is a formal document issued by a seller to a buyer, detailing the goods or services sold, the amount due, and payment terms. It serves as the primary reference for payment requests and as official proof of a sales transaction.
A receipt confirms that a specific amount of money has been received by the seller from the buyer. It includes transaction details such as amount, purpose, date, and the recipient's signature. Usually made in duplicate—one for the buyer and one for the seller.
A debit note is used when the buyer files a complaint regarding the goods received—for example, due to defects or mismatched orders. It serves as a formal request to the seller for a refund or price adjustment.
A credit note is the opposite of a debit note. It is issued by the seller to acknowledge a return of goods from the buyer or an agreed price reduction, commonly used in return processes.
A cash note is commonly found in retail and confirms cash purchases. It includes item names, quantities, unit prices, total amount, and transaction date. Typically printed in two copies for both parties.
A cheque is a payment tool used to withdraw funds from a bank account. It contains the amount to be paid and the recipient's name. The recipient can then cash it according to the specified value.
A memo serves as internal transaction proof, usually issued by managers to the finance or admin team. It may include salary instructions, routine expense records, or accounting data adjustments.
A bank giro slip is a written instruction from an account holder to the bank to transfer funds to another account. Unlike a cheque, it cannot be cashed directly—only transferred between bank accounts.
This records any cash received by the company, such as sales revenue, debt collection, or investor funding. It’s essential for cash flow documentation and financial reporting.
As the name suggests, this records all expenditures—paying debts, purchasing goods, or covering operational costs. It helps show where the company's money is being spent.
A bank deposit slip is issued by the bank when someone deposits money into an account. It’s official proof that the deposit was made and recorded in the banking system.
A bank statement is a monthly report from a bank detailing all transactions in an account—debits, credits, administrative fees, and interest. It is useful for checking balances, transaction history, and audit support.
In today’s digital era, manual transaction documentation can be time-consuming and prone to errors. To solve this, VIDA offers Magic Scan, a smart solution for digitizing transaction documents using advanced technology to scan, recognize, and store documents automatically.
Bulk Scan up to 15 documents at once—ideal for businesses and finance teams handling daily transactions.
Automatic Document Detection—no need for manual positioning.
Auto Crop & Adjust—ensures clean, high-contrast, and readable scanned results.
With Magic Scan, you can store and manage various transaction proofs neatly and efficiently.
Understanding the various types of transaction proof is crucial for ensuring the accuracy and validity of every business transaction. By leveraging technology like Magic Scan by VIDA, managing transaction documents becomes more efficient, secure, and organized.