Introduction to Correspondence

Published by: BhumiRaj Timalsina

Published Date: 18 Jan 2022

Introduction to Correspondence in Accountancy of Grade-9 , Reference Notes


Handling correspondence is one of the routines of an office. It is creative and challenging functions to be performed by an office assistant. Correspondence is a written form of communication which formalizes all the official activities of an organization. It is considered as the formal agent, which speaks and gives messages on behalf of the office. An effective letter is a strong tool for motivating people, changing their attitude and maintaining and developing good relations with them. It is used for making an inquiry, giving replay, placing an order, making complaints, settling compliant and attracting potential customers. It gives a positive impression to the customers and helps in increasing goodwill of an organization. so, the successful or failure of the organization mostly depends upon efficiency in handling correspondence.


Correspondence is the most useful means of written communication. It is the process of exchanging official information between individuals and organizations of different places. It is the process of receiving and sending letters for achieving a definite objective. It may also take place in the form of a report, circular, telegram and electronic mails. The following is a definition of correspondence:

"Correspondence can be defined as communicating in writing on subjects of mutual interest either within the organization or with an outsider. " - S.P Arora

According to this definition, we say that correspondence is the process of exchanging written information between individuals and organizations of different places for carrying out different official activities.

Need and Importance of Correspondence:

  1. Exchanges information
    Correspondence is the safest, cheapest, most convenient and popular means of exchanging information for all individuals, business organizations, government offices, and social organization.
  2. Enhances goodwill
    Effective letter writing creates a positive impression upon the customers. It helps to develop positive attitude and impression about the activities and products, which ultimately helps to enhance the goodwill of the organization.
  3. Determines responsibility
    Correspondence is a written document which is signed by the writer. It makes the receiver responsible for doing the job as specified in the letter.
  4. Provides evidence
    Correspondence maintains written record which can be produced as an evidence for the transactions performed and contract done. Such evidence is useful for settling disputes and misunderstanding.
  5. Makes communication reliable
    Correspondence is the most reliable means of communication. It is the authentic means of communication which formalize all the activities of an organization.
  6. Provides written records
    Correspondence provides written records for all the activities of an organization for future reference. It provides the written records for the transactions performed, decisions were taken and contract and agreement done.
  7. Maintains public relation
    Correspondence is a strong means of communication for maintaining and developing a warm relationship with customers, suppliers, financial institutions and governmental bodies. It helps in changing the interest and attitude of the customers and promoting sales.

Objectives of Correspondence

  1. To keep permanent records of important activities regarding activities the transactions, contracts, an agreement made and decisions taken.
  2. To settle the misunderstanding and disputes regarding different matters of the organization by providing written evidence.
  3. To provide the valuable information to the concerned parties at the time of necessity.
  4. To maintain present and attract potential customers and to promote.
  5. To fulfill legal formalities as per the requirement of the concerned act.