A Guide to Essential Accounting Forms for Small Businesses

by Agro Accounting CPA Accounting for Artists, Freelancers & Creative Com

If you own a small business, you must know that organization and clarity are predominant factors in the growth of your business. No matter how much effort you are putting into your business, if you are not organized in your accounting matters, then your efforts can be wasted.

If you are not too aware of accounting procedures, then you can find support through an accountant for freelance workers. This article will shed light on different accounting forms you must be aware of.

Employee Timesheets

 

The primary form to keep track of is an employee timesheet. Keep track of it daily, weekly, and monthly. These sheets guarantee that your employees are getting an appropriate pay rate and overtime pay, if applicable. These sheets should be incorporated into your payroll records to make the total process accurate and efficient.

 

Income Statement

 

The income statement allows you to see the profitability of your business. It will monitor the ups and downs of your business’ income and expenses during specific periods. Through this, you will begin to notice changes in your business performance. You will also get to know the cuts and charges that need to be made in any department.

 

General Journal

 

The other crucial part of business reporting is bookkeeping, which is done to record daily transactions, help prepare vital tax returns, and other financial reports. While doing bookkeeping, make sure nothing slips through your hands. You should keep track of the details of how your business is incurring revenue and expenses through operating and non-operating activities.

Profit & Loss

 

If you are not using any accounting software, then you must be organized in manually keeping track of both your profit and losses to keep your bookkeeping accurate. The core of your business relies on the money that comes in and flows out. A profit and loss is not only required in a legal sense, but also necessary for the healthy growth of your business. PS: The terms “income statement” and “profit and loss” are interchangeable.

 

Tip: You can rely on Tax Consulting for Freelance Workers for guidance on preparing your profit and loss.

 

Balance Sheet

 

The balance sheet is mandatory for a company to ensure its progress. The balance sheet allows you to track the standing of your business at a specific point in time. You can also compare current periods with previous ones, and vice versa, with the help of the balance sheet.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Jun 1st 2021 02:06. Viewed 335 times.

Comments