How To Create A Statement Sheet In Google Sheets
When making your statement sheets, you have to understand the structure of your statement sheet. It would revolve on assets, deposits, a statement of account, and liabilities. Facts show that central banks constitute the largest share of bank liabilities. They would require a log sheet to keep track of any amount of cash that goes in and out of the bank, and it would determine its profit and losses as well. There are many things we can dwell on in the world of business. So let me give you a few simple tips as you create your statement sheet. Let’s get started.
1. Create The Component
When creating your statement sheet, you have to make sure your estimated sheet would divide your assets, liabilities, and deposits to know where your current business status. The accounting equation is the sum of your assets deriving from the owner’s equity with your debts is the basis to the component of your statement sheet.
2. Profit And Loss
A profit and loss statement is a list that would list your income, expenses, and net income or losses. It is useful for your business’s tax return on your blank sheet. Just make sure the values on your report are of the exact amount and don't include cents in your statement. It will look more accurate that way.
3. Prepare For The Next Wave
Once everything in your financial statements are ready to go and settled, don’t relax just yet. Prepare your closing entries and clear out your income and expense accounts in the general ledger and transfer them to your net income and losses and your owner’s equity. They serve as closing entries in your general journal.
4. Close The Books
As you are closing on finishing your analysis sheet, now it’s time to clear out your revenue and expense accounts and start a new accounting period. It’s a quick and straightforward mechanical process. All you need to do is to close your reports, such as your revenue, expense, and drawing. Lastly, make sure you’re income summary balance is transferred to the capital account.
5. Wrap It Up
Once your sample sheet has its contents compiled and settled on your report, it’s time to wrap things up. Foot the general ledger accounts at the beginning amount to start the new accounting period. All the values of your revenue and expenses will go back to zero. Handling a business can be very complicated at times if you just started. But once you get the hang of it, you won’t have any problems dealing with your reports whether it be on a daily, weekly, monthly, or annual basis. Give your all and effort if you want to thrive and rise in the business world.