Financial Transaction

A financial transaction is the original transaction for example a purchase or a payment. Generally speaking financial transactions trigger the five stages of the accounting system.

Common Financial Transactions

Here are some examples of common financial transactions.

Selling goods and services

• Cash sales - for immediate payment (though this can also be paid for via a debit or credit card)
• Credit sales - for payment at a later date

Making purchases and paying expenses

• Settling purchase invoices
• Buying an item to be used by the business
• Buying fuel for a delivery van
• Postage stamps

Payments in and out of the bank account

• Cash, cheques etc from selling items
• Paying for purchases
• Settling company credit card
• Wages
• Petty cash withdrawals from the bank