Bookkeeping › Books of Prime Entry

What is a source document and why is it important?

Beginner

Answer

A source document is the original record evidencing a transaction—invoices, credit notes, receipts, till rolls, bank statements, remittance advices, and cheque counterfoils. It is the starting point for entries in the books of prime entry, provides an audit trail, and supports the accuracy and validity of the records.
Real-world example The bookkeeper enters a purchase only after receiving the supplier's invoice as the source document.

Common follow-ups: Name common source documents. | Why do source documents create an audit trail?