How to Prepare Professional Financial Statements
How to prepare Financial Statement is technical Question. An
accountant or Auditor need to know importance of these statements as well
as it has much more importance for investor because if an accountant is
showing wrong statement that mean the financial picture is not true and
fare.
So today our topic is how to prepare a Financial Statement like a professional.
Let see what is in this episode of training. Actually this lesson is divided
into two parts. In
part first i will tell you about Knowledge of Accounting and
Financial Reporting and part two will explain the importance of MS Excel for
such kind of Statements. Let start our topic
How to Prepare
Financial Statement like a Professional
Step 01
Knowledge of Accounting and Financial Reporting.
For an accountant or person who is preparing such kind of
statements there are two type of data required to create a professional look
for such statements. This is called Un-Organized data and Organized Data.
Let see what is Organize data and what is un-Organized data.
What do you mean by Un-Organized ro Raw Data.
Actually incomplete Data is known as incomplete Data. But for
professional Statements you need organized and meaningful data. Now again there
is a question how to get Organized data, for this you need to improve your record keeping
system. If you record system is up to mark than you cannot claim that your date
is raw or un-Organized.
So if you basic root line (Record system) is reflecting true and
professional look you can get Organized data.
Here one thing more i want to share that whatever Book System you
are using either it is Single Entry system or Double Entry system it must be
prepared as per accounting standards so that you will be able to get
meaningful financial statement that really make sense.
A Valid Trail Balance is Important.
If you are a Professional and need a financial statement accurate
and meaningful you actually need an error free Trail balance. A Trail Balance
that have correct and Equal Debit and credit side. For This kind of Trail
Balance again you need meaningful data for drafting or preparation of accurate
view that really make sense.
If you are a consultant the primary data will be collected from
your Clint , in case of Accountant in any organization you will collect data
from your record keeping department so when you collect data you have to
justify is it Organized or not. In case of non-Organize data you just have to
filter it and make a Trail Balance after that it is the last but not the least
stage to prepare your Financial Statement.
Now you can make a professional Financial Statement with the use
of Your Professional Accounting Skills.
Step By Step Guideline for Preparing Financial Statement:
01- First Identify the Period of Accounting Year is it one Year
Statement or continuity of Previous Accounting Years
02- In case of Continuity you need some Opening Balance while in
case of Only one Year F.S you just have to start with Zero Balance.(As Opening
Balance)
03- Now apply the Financial Statement Procedure with the use
of Excel ( Excel is best way to use for Financial Statement) and Prepare the
best and Professional Financial Statement.
Please as any question if you have any ambiguity regarding this
session.
Your all Suggestion and Comments are Welcomed Please Comments us.
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