Simply put, a worksheet, or what is commonly referred to as working paper, is a worksheet record consisting of several columns containing company accounting data. This balance sheet is not part of the financial statements, but the data is very helpful for companies when they want to prepare financial statements within a certain period. Meanwhile, if you need to make an accurate financial statement in a short time, we recommend you hire the bondi junction xero bookkeeper.
Because it is not a financial statement, it is not formal. That is, companies are not required to make working papers for their business interests. In addition, the data contained in the worksheet can be corrected at any time if needed.
The worksheet is very useful to assist companies in preparing financial statements. But besides that, there are several other important functions, including:
1. To classify financial data
Why can it be easier in preparing financial statements? Because the data from the trial balance have been sorted and classified into columns. There are at least five columns, namely the trial balance column, adjustment column, adjusted trial balance column, profit and loss column, and balance sheet column.
2. Re-examine financial data
Errors in recording financial data are very likely to occur. Therefore, when making this worksheet, we can crosscheck the data written, especially in the trial balance and adjusting journal.
The purpose of the worksheet
The purpose of making paperwork is as follows:
– Minimize errors that can occur when preparing a balance sheet and adjusting the entry journal.
– Facilitate the preparation of financial statements.
– Check accuracy in calculating financial transactions.
Benefits of a worksheet
The benefits that can be obtained for the compiler when preparing working papers.
– It can be used as a reference for composing closing journal entries.
– It can show that the company has performed the right procedures in preparing financial statements.
– It can help find the possibility of recording errors in financial data.