Its importance is that it is a draft prepared by the accountant, with the purpose of preparing, based on it, the main financial statements, such as the profit and loss statement, the balance sheet and the surplus.
Workplace can be handled by worksheet efficiently by following ways:
The worksheet gives users a basic idea for checking the calculations to see how the finished statements of the company can look like before the end of the accounting period.
The worksheet helps in planning. By seeing the finished statements before end of month, users can make decisions on the need of purchasing good, hire employees or can also understand the performance of the company
In the worksheet we have formulas through which users can do the calculation easily and keep a track of debit and credit balances, income statements, balance sheets etc.
Worksheets are designed mostly for internal purpose only, due to which the external users or investors or creditors cannot always take a look of it. Companies can customize the format of the sheet according their internal demands and needs.
