Once you’ve customized the Income Statement Template for your business, you’ll mostly be using the Transactions sheet. Microsoft Excel (and its simpler, online cousin Google Sheets) is adaptable. That being said, even if you’re good enough at Excel to compete internationally, there’s only so much you can do with it in a DIY bookkeeping context. We’ll show you how, using Bench’s Income Statement Excel Template to get started. It’s a big part of calculating the costs of goods sold which you subtract from the sales account to find your business’ gross profit. The purchases account should also be something you look at when doing your books.
At first glance, bookkeeping and accounting may seem interchangeable. While it may be easy to confuse the two, they are not the same thing. When you think of bookkeeping, you may think it’s all just numbers and spreadsheets. Bookkeeping is the meticulous art of recording all financial transactions a business makes. By doing so, you can set your business up for success and have an accurate view of how it’s performing. The double-entry system of bookkeeping is common in accounting software programs like QuickBooks.
Optional—Add a sheet for projecting cash flow
The Chart of Accounts includes an account for “Gas & Auto.” But if you don’t drive for work, you don’t need this row—so you can delete it. The same follows for any other account that doesn’t apply to your business. The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. So keeping this account accurate and always up-to-date is vital for when you need to meet tax reporting requirements. Ignore this and don’t be surprised if you land in hot water with the taxman.
- Bookkeeping is the process of tracking and recording a business’s financial transactions.
- Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published.
- For small businesses, templates provide an easy way to record payments and expenses, generate financial statements, process payroll, and prepare for tax reporting.
- If you’re like most modern business owners, odds are you didn’t become one so that you could practice professional-level bookkeeping.
- To make things easier, many companies opt to use bookkeeping software to keep track of their financial history.
For related templates, including those for reconciling petty cash and general ledger accounts, see our collection of free reconciliation templates. When you start to do bookkeeping for your small business, you should be aware of the different types of accounts that you need to maintain. So, here’s a really easy way to make the process straightforward…
Expense Report Template
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein. If your business keeps growing, you’ll eventually need to move on from Excel. This pivot table gives us a simple summary of how much we spent from each vendor and how often we bought from them. Pivot tables allow you to visualize and summarize your accounting info.
View hourly rates, total hours, and total pay for each day and week. Record debit and credit transactions in this double-column cash book template to monitor your cash balance. Enter the date, description, and amount for each transaction, and the template will calculate subtotals and total cash balance. With bookkeeping, the business will understand where their capital is going.
Accounts Receivable
If you’re at the point where you believe your business needs double-entry bookkeeping, it’s time to use accounting software. This statement of account template shows all of the financial transactions that occurred between your business and a customer during a certain time period. The template provides an account summary, including the customer’s previous balance, credits, current charges, balance owed, and due date. Customers also receive an itemized list of charges and credits, including invoice numbers, dates, and amounts.
The template includes space to record trial balance, adjusting entries, adjusted trial balance, income statement and balance sheet for each account. There are several standard methods of bookkeeping, including the single-entry and double-entry bookkeeping systems. While these may be viewed as “real” bookkeeping, any process for recording financial transactions is a bookkeeping process. This basic cash flow statement tracks the movement of money in and out of your business and compares financial data between time periods.
Bookkeeping PDF Templates
Create a detailed report that displays quarterly cash flow projections. This template allows you to track the variance between your projected and actual cash position for each month and calculates total cash payments and net cash change. Take routine bookkeeping off your never-ending to-do list with the help of a certified professional. A QuickBooks Live bookkeeper can help ensure that your business’s books close every month, and you’re primed for tax season. Our expert CPAs and QuickBooks ProAdvisors average 15 years of experience working with small businesses across various industries.
Thus, encouraging bookkeeping is the secret of a successful business. In most accounting firms, bookkeeping is a practice that accountants have to master. Since a large company has a wider financial scope compared to a smaller business, owners hire the best bookkeepers to look after their journal and general ledger. Yet, small businesses and self-employed business persons must also consider bookkeeping as a vital part of their financial ventures. As you dive deeper into the bookkeeping process, it may be tempting to blur the lines between your personal and business finances, but it’s not the best idea. By avoiding this, you’ll reduce the risk of triggering an IRS audit and will allow an accurate picture of your business finances.
Track business expenses such as transportation, entertainment, lodging, and meals with this expense report template. Specify the time frame at the top of the spreadsheet and list all expenses with dates for each transaction. The template provides space to add notes or detailed descriptions as needed. Get a snapshot of your monthly profit and loss report by entering your financial data and selecting the month that you want to view in the dashboard. Whether it’s updating your books or keeping in contact with your tax adviser, maintain your business’s financial records and expenses throughout the year.
