What is worksheet?

What Does worksheet Mean

The concept of a worksheet is used in the accounting field to refer to the draft that an accountant develops while keeping accounts. It is an internal document that helps to organize the information to prepare a financial statement, although its use is not mandatory.

In the worksheet, the accountant gathers the data of the activities that a company carried out during a certain period. There he organizes them in a logical way and can make all the corrections that he considers necessary.
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 produced for publication or presentation purposes .

Usually, 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 the balances and movements and the profit and loss statement. , among other. There are several 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 up to sixteen columns.
These types of worksheets do not differ only in the number of columns, but they 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 cash ). Regarding these last two concepts, we must explain that they are framed in the accounting methods and periods : the cash basis only recognizes income as soon as the money enters or leaves the box, while the accrual basis takes into account income or pending payments from the moment the obligation is incurred.
The six- column and eight- column worksheets are used on the cash basis only, while the rest, which can have a minimum of ten and a maximum of sixteen, serve 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 devoted to trial balance . There, the balances contained in the general ledger of all the accounts are placed until the time of the preparation of the sheet. Another important column is that of the adjustments , where the corrections of the amounts that have not been accounted for or that are not entirely accurate are detailed , all this when the accountant closes the period of the worksheet.

Ultimately, the worksheet aims to check whether the accounting records are accurate, allowing the accountant to make the corresponding corrections and adjustments and order the information to be presented. The financial situation of a company is reflected in its financial statements : the worksheet is a preliminary instrument for the closing of these statements .
In this context it is necessary to define slightly the concept of financial statements . Other names by which it is known are financial reports , annual accounts and accounting statements , and these are the reports that organizations use to present their economic and financial situation, as well as the changes that it has 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.

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