When you receive payments from your customers, you will deposit the money into your business account. It is a good habit to prepare a deposit slip whether your bank requires it or not.
Deposit slips are good supporting record of who has paid you. On a deposit slip, you will list the customer name and the amount of each payment. The information can be used by your accounting clerk or bookkeeper to update your customers' balances.
We have seen many small business owners suffered because they didn't prepare and keep proper deposit slips. Imagine what would happen if you deposit five cheques together and the amount is just shown as a lump sum on your bank statement. Without a deposit slip, how will you remember two months from now where the money came from? And how are you going to know how much your customers still owe you?
We always advice our clients prepare and keep proper deposit slips.
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