Accounting for every cost and revenue is very important when running a business. Managing money is now made easier and faster with the use of accounting templates. With ready-made and print-ready accounting templates, we offer only the highest grade and professional quality templates in Adobe PDF, Microsoft Word, MS Excel, Apple Pages, Google Docs, Google Sheets, and Numbers. Now, more than ever, it is vital for every business to improve efficiency in its operations which translates to better or increased revenue. Download our accounting templates today and get tour hands on some of the easiest to use and fully customizable accounting templates around.
How to Create an Accounting Document?
Accounting documents or statements are created to provide clear and precise data on the operating, economic, and cash flow outcomes of your company. This enables your business to assess your economic performance, proposal, and forecasting. One of the dullest and upsetting duties to be performed by an accountant is to prepare accounting statements. But, you can never say no to an accounting statement because without it, you're company won't be able to succeed its operations.
Admit it, creating an accounting statement is a difficult task! But since we want to give you nothing but comfort, we created a step-by-step guide below to make your job a lot easier. Examine each step well and make sure you apply it in your day to day experience at work. Check this out!
1. Analyze your Financial Transactions
Every day, your company keeps a lot of transactions. You need to collect all business records related to any economic operations such as invoices, bank statements, and receipts. Check for any gaps, and make sure you have a full copy and record of these documents.
2. Prepare the Unbalanced Trial
Your unadjusted trial balance will be prepared at the end of every accounting period. This is achieved by summing up all the debit and credit accounts of your company and calculating your total balance sheet.
3. Post Transactions to Your Ledger
Your ledger consists mostly of your full company transactions journal entries, listed in chronological order. It has to demonstrate two accounts each time you enter a transaction, which is your debit and credit. The debit is exactly the same as the money that goes out from your company's(say restaurant) account; meanwhile, the credit is the money that goes inside your company's account.
4. Create Submissions Of Adjustment Entries
It's time to adjust your entries after you input everything. Make sure your financial statements contain only appropriate data such as deferrals, accruals, missing transaction adjustments, and tax adjustments for a specific period of time(use an accounting calendar for the purpose). Deferrals are consisting of the list of money before you spend from the revenue. Meanwhile, accruals don't immediately record the revenue. The missing transaction adjustments will help you trace your forgotten transaction in bookkeeping while tax adjustments will state the tax deductions.
5. State the Adjusted Balance of Trials
Create another trial balance and verify all the entries you've created. The purpose of your adjusted trial balance is to demonstrate everything, even after all the adjustments that were made. Make sure everything is balanced in the sheets, or else you will review every document from the start.
6. State the Financial Statements
Finally, it's time for you to submit your accounts. Start with the income statement and balance sheet. Your balance summarizes the assets, liabilities, and equity of your company, while your income statement summarizes expenditures and earnings. Once both of them have been resolved, you can continue to review your cash flow and check your cash in and out for all business and performance operations.