While providing excellent customer service is a major factor in any company’s success, most companies are not only in it to offer service; they are in business to make money.
A good location, staff and products for your business are all essential ingredients in the success of any organisation, as is dealing with its finances efficiently and securely.
Financial transactions take place every day and include the handling of cash, cheques, credit cards, EFTPOS and banking procedures. Customers come in and pay for products and services via these transactions and the sale must be processed correctly.
Process customer payments
Every time you take money from a customer, or pay money to a supplier, you are making a financial transaction – an exchange is made; goods or services are exchanged for money.
Financial transactions are an extremely important part of any business operation as its continued success and existence depend on its financial viability. So great care must be taken when dealing with money. In dealing with these finances, within the scope of your role, you may be required to complete a variety of forms and other paperwork – even if you do most of your financial transactions electronically.
The Australian Taxation Office requires every business to keep a record of all its financial transactions in order to show their exact income and expenses for each year. In order to ensure that this is done correctly most of the financial forms and documents you need to complete will be what are known as ‘accountable documents’ and will have sequential numbers pre-printed on them.
This means the numbers shown on the documents will be in strict numeric sequence. In this way each document is accounted for. You can’t, for example, report a list of receipts issued to customers numbered; 0010, 0011, 0012, 0014, 0015 and 0016 without having to explain why receipt number 0013 is missing – you must be able to show each receipt issued. If number 0013 was made void either because it wasn’t filled in correctly, the customer changes their mind about making the purchase or whatever reason, then the receipt should still be accounted for showing that it was cancelled and why.
Accountable documents are used in many of the financial transactions you will undertake on a daily basis
Types of financial transactions
There are a great number of different transactions that you might need to deal with in the tourism and hospitality industry. The most common of which include (but are not limited to):
payments made in cash
payments made by non-cash methods, including;
electronic funds transfer at point of sale (EFTPOS)
foreign currency and travelers cheques
petty cash disbursements
Cash Transactions (paper based)
Despite the fact that we now have many forms of electronic banking and dealing with money, there some organisations that still use paper transactions and we will now take a look at the various forms including;
Receipts are issued whenever a customer pays you money for a product or service. They are, as already mentioned, accountable documents and must be issued in strict numeric sequence so that the company accountant or anyone conducting an audit on your organisation can clearly trace what monies were received. If more than one item is purchased, then the items are added up and the receipt is issued for the total amount.
A completed receipt looks like this: …. continued in learner guide …..