Most of the preparations in making financial statements go to the preparation of accounting worksheets. This seems like a tedious task because we’re not talking about a single worksheet. We’re actually dealing with multiple worksheets with multiple columns and rows. Now if you think that’s scary, just imagine how it was before computers where invented. Present-day technology improved our way of living. And thanks to the same technology, making and using accounting worksheets are made convenient.
What Is an Accounting Worksheet?
An accounting worksheet is a tool used by many companies to record their financial activities and keep track of both their income and expenses. Companies, specifically the accounting department, use accounting worksheets to help in the preparation of various accounting report samples, and financial statements. At the end of an accounting period, an accounting worksheet is prepared. It contains information on account balances, the adjustments made to each account, and the adjusted balance of each account. Without accounting worksheets, a company will have trouble producing an accurate financial statement.
While it’s very useful, the worksheet is specifically designed for internal use only. Different companies customize their accounting worksheets to fit their internal demands. There are also varied reasons why accountants use accounting worksheets. One main reason is that it reduces the likelihood of errors when making financial statements. Some activities are also made easier with the use of worksheets, such as transferring t-accounts into an adjusted trial balance.
How to Make an Accounting Worksheet
Making an accounting worksheet can now be done quickly, thanks to reliable computer programs and applications. There are now several ways on how you can make the worksheet, aside from handwriting everything. Here are simple steps that will help you get started.
1. Prepare the Necessary Equipment
For this task, you’ll need a computer or laptop that has the spreadsheet program that you want to use. Install a spreadsheet program of your choice if it doesn’t have it. The task can also be done with a tablet. Just make sure to use the device that you’re comfortable with. You will also need a printer to print copies of your finished worksheet.
2. Create a Table
After completing the equipment preparation, the next step is to open the spreadsheet program you will be using and create a table. An accounting worksheet is made up of multiple columns and rows, which can be easily created with a couple of clicks in a spreadsheet program. Just estimate the number of columns and rows that you need.
3. Add Labels to the Worksheet
When your table is ready, proceed with adding labels to the worksheet. The first column should be labeled accounts, and the remaining columns should be labeled as the accounting worksheet components. The five components are the unadjusted trial balance, adjustments, the adjusted trial balance, the income statement, and the balance sheet. The revenue accounts, assets, liabilities, and expenses of a company in a certain year is recorded under the unadjusted trial balance column. The adjustment column contains all accounts of the company that needs adjustment. The entries for the unadjusted trial balance column and the adjustment column will result in the entities of the adjusted trial balance column. The values of the company’s expenses and revenue accounts are put under the income statement column. The last column, which is the balance sheet column, is where the value of assets, liabilities, and capital is placed.
4. Format Cells
You may program each cell, or an entire column or row so that it will automatically make the necessary calculations after entering data into the cells. This is a convenient spreadsheet function as it minimizes errors and ensures that your data is accurate. You may also add your personal preferences to the worksheet, like your preferred color schemes, font, etc.
5. Finalize the Accounting Worksheet
Make the financial changes on the worksheet. Review the information you’ve entered before saving and printing a copy of the accounting worksheet. Keep a copy of the spreadsheet so that you can make changes to it anytime if you need to.
FREE 10+ Accounting Worksheet Samples and Templates in PDF | MS Excel
1. Accounting Worksheet Template
2. Financial Worksheet Template
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4. Format of Accounting Worksheet
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6. Sample Accounting Worksheet
7. Simple Accounting Worksheet
8. Cash Flow Budget Worksheet Template
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11. Accounts Worksheet Template
What are the examples accounts listed under the account column?
Under the accounts column is the list of accounts that a company needs to pay or spend on. Examples of these accounts include accounts receivables, accounts payables, prepaid rent, inventory, cash, loans, equity, revenue, cost of sold goods, utility expenses, plant and machinery, freehold property, other liabilities, and other expenses.
What are the advantages of an accounting worksheet?
The good thing about an accounting worksheet is that it makes the preparation of the company’s financial statements easy to complete. It is also one way for a company to know its financial health or status before the financial statement is created.
What are the limitations of an accounting worksheet?
The use of accounting worksheets reduces the errors as calculations can be done automatically by programming the cells in some columns and rows. However, it does not mean that it is 100 percent accurate. Since data is entered manually, it’s possible to commit mistakes. Calculations are accurate, but the calculated value may be inaccurate if data entered is wrong.
Accounting tasks are made easier and convenient with the use of accounting worksheets. This multifunctional tool will help you get the job done in no time. You can also use ready-made accounting worksheet templates and customize them according to your needs. Just check out the samples above and download them for free.
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