No need to be too complicated, adjustments to your balance sheet can be directly summed or subtracted by the value or nominal in the account in question. That way, the value of the balance on the trial balance becomes more accurate. In preparing the financial statements, you need to fill in several explanations kind of profit and loss statements, changes in capital, and also balance in the Bookkeepers Silverwater system. At this stage in the preparation of the financial statements, you must move account information on the adjusted trial balance to the financial statements. The recording must also be adjusted to the format of the financial statements.
In explaining the balance sheet, you must fill the financial position of the business or company. Starting from assets, debt, to capital in the accounting cycle period you need to record in detail and in full. The preparation of a balance sheet is also quite simple because you only need to write the balance sheet data and do the preparation on the balance sheet following the existing part of the balance sheet. For the profit and loss statement, you write down the calculation of the company’s income and expenses or expenses. You must record and count all the company’s money coming in and deduct it from the expense burden in the process of earning income. In other words, you must reduce the income received by the cost of capital spent so that the income can be obtained.
Whereas for reports on changes in capital, it must present changes in the location of the capital in your company or business. Changes in the capital can occur because there is an increase in capital or private, ie a reduction in investment from business or corporate capital holders. Furthermore, you can add the results of changes in the capital with profits and losses on the profit and loss statement. That way, you can find out the nominal capital of the company in the accounting period. The last two points on the financial statements are cash flow statements and financial statement notes. For a statement of cash flows or flows, you can present the company’s cash inflows and outflows. You can write the cash flow based on investment, funding, and operational activities in one accounting cycle period.