Basically, an accounting journal is simply a record of all transactions recorded in a legal journal. A legal journal is basically a summary of all financial transactions and dealings that influence the transaction being investigated. Generally, there are two ways to input the information: single-entry and double-entry bookkeeping system. Double-entry bookkeeping system is considered as more accurate. The main reason why double-entry method is used by accountants is because it will record only the changed items; thus, it will be easier to calculate deductions, credits and debits.
There are also accounting journal templates available online for accountants to use at their workplace. If you are an accountant and you want to create financial statements every month, the best option for you is to use journals. This can save you a lot of time because you don’t have to create each and every journal yourself. Instead, you can just search for journals that will help you create your monthly financial statements.
Accounting Journal Templates
If you will start looking for accounting journal templates online, you will find a wide variety of them. Basically, these templates will contain entries or transactions on how the company made its financial transactions. Included are the name of the business, the date of transaction, the cash or assets transferred, and the cost involved in transferring the transactions. Depending on the kind of accounting software you are using, you can choose the kind of financial transaction entry that best suits your needs. There are even journals that allow users to enter data via graphs so you can easily compare the transferred value with the cost incurred.
Accounting Journal Templates Preview
Most accounting journal templates include the balance sheet and income and expenses statement. The balance sheet will show you the difference between total income and total expenses every month. This will give you an idea on what your company is actually spending its money on. The income and expenses statement will show you the net income or amount of cash in your business or accounts every month.
Aside from providing business owners with an effective means in recording their daily financial transactions, journal templates also come in handy in creating tax reports. If you will use these journals for your taxes, you have to make sure that you have all the necessary information regarding your transactions. Otherwise, the government could find some inconsistencies in your financial records which would eventually cause penalties and interest charges. To avoid this hassle, it would be best if you are able to record everything you do so that the government will not find any inconsistencies.
If you would like to create general journals, there are a lot of available templates out there. One way to determine which one to use is by determining whether you are going to record all your daily financial transactions or only those that concern your tax return. General journals are very helpful in keeping track of your day to day transactions but it can’t provide you with an overview of your business’ financial condition. For this, you have to record the various transactions in your business through books, journals, ledgers and so on. For those who are using accounting journal templates for tax preparation, it is best to use general journal templates that have already been prepared by experts since these usually contain basic information about your business and transactions. To ensure accuracy, you should use only the most updated forms that were created by professional financial advisors.
Download Accounting Journal Templates
When creating accounting journals, you should also include a balance sheet and income statement. The balance sheet will feature a detailed list of your company’s assets and liabilities. This will allow you to see at a glance what your company is earning from all the different sources. For your income statement, you have to include all the income streams your company gets from different sources. With the help of accounting journal templates, you don’t have to spend a lot of time in creating these two accounts since they are usually included in the package.
In addition, there are many free online templates for accounting journal that you can find. These are usually less expensive than the ones used by professionals since they are available online. You should also take care when selecting them because not all of them may be useful in your particular situation. In fact, you should only choose those that will help you build an effective financial record-keeping system without requiring too much effort on your part. If you want, you can consult a professional accountant or financial advisor for help in finding the right accounting journal templates for your needs.