The worksheet is made by an accountant as a draft.
The concept of a worksheet is used in the field of accounting to refer to the draft that an accountant develops while keeping accounts. It is an internal document that helps organize the information to prepare a financial statement, although its use is not mandatory.
In the worksheet, the accountant gathers data on the activities that a company carried out during a certain period. There you organize them logically and you can make all the corrections you consider necessary.
Worksheet Utility
The professional, in this framework, can analyze movements and observe adjustments in a simple way. It is important to note that the worksheet is not prepared for publication or presentation purposes.
Typically, the worksheet has a heading (with the name of the company and the date of the recorded period) and columns such as the names of the accounts, the trial balance with balances and movements, and the statement of profits and losses. , among others. There are various models of worksheets: worksheets with eight columns and worksheets with twelve columns are the most common, although there are also worksheets with six, ten, fourteen and even sixteen columns.
There are different types of worksheet.
Characteristics depending on the type
These types of worksheet do not differ only in the number of columns, but serve to satisfy different needs that are closely linked to the purpose for which they are prepared, to the company's waste or to the basis of accounting (which can be accrued or effective ). With respect to these last two concepts, we must explain that they fall within the accounting methods and periods : the cash basis only recognizes income as soon as the money enters or leaves the cash register, while the accrual basis takes into account income. or payments pending from the moment the obligation is contracted.
The six-column worksheet and the eight- column worksheet are used only on the cash basis, while the rest, which can have a minimum of ten and a maximum of sixteen, work for both bases. The most popular among accountants are the first two, although the structure used in each case responds to their particular needs.
The first column of a common worksheet is usually dedicated to the trial balance . The balances contained in the general ledger of all accounts until the moment of preparation of the sheet are placed there. Another important column is the adjustments column, which details the corrections of amounts that have not been accounted for or that are not completely accurate, all of this when the accountant closes the period of the worksheet.
Difference Between Worksheet and Financial Statement
The worksheet, in short, aims to check whether the accounting records are accurate, allowing the accountant to make the corresponding corrections and adjustments and organize the information to be presented. The financial situation of a company is reflected in its financial statements : the worksheet is a prior instrument for the closing of said statements .
In this context it is necessary to slightly define the concept of financial statements . Other names by which it is known are financial reports , annual accounts and financial statements , and these are the reports that organizations use to present their economic and financial situation, as well as the changes they have gone through in a period or at a certain time. . The usefulness of this information is used by managers, administrators and regulators, but also by creditors, owners and shareholders.