Accounting worksheet definition
/What is an Accounting Worksheet?
An accounting worksheet is a document used within the accounting department to analyze and model account balances. A worksheet is useful for ensuring that accounting entries are derived correctly. It can also be helpful for tracking the changes to an account from one period to the next. An accounting worksheet is commonly employed as an internal document in which key information is stored, either at a detailed or summary level, to support an accountant’s work in preparing financial statements.
Disadvantages of Accounting Worksheets
Accounting worksheets may contain errors or formula inaccuracies, since they are separate from the accounting database and are manually maintained. Consequently, it is necessary to review them carefully before relying on their summary totals. If you really need to use an accounting worksheet, then at least copy the same worksheet forward from period to period; doing so should reduce the risk of any new worksheet errors being introduced.
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Examples of Accounting Worksheets
As an example of an accounting worksheet, the unadjusted trial balance for a reporting period is exported from the accounting software into a spreadsheet, and then adjusted in the spreadsheet to determine the effects of possible adjusting entries. If the outcome is correct, the entries are then input into the general ledger.
As another example, an accountant maintains a detailed listing in a worksheet of the contents of each balance sheet account. If a worksheet total does not match the account balance to which it is linked, it may be necessary to adjust the balance of the account. These worksheets may be provided to the auditors as part of the annual audit, as evidence that the balance sheet accounts are correct.