When it comes to chronicling your company’s financial past, general ledgers tend to provide the essential “glue” for profit and loss.
Journaling a number of financial moves from cash deposits, transaction receipts and cash disbursements, general ledgers provide a form of “financial evidence”. In other words, those more miniature cash transactions that make up a general ledger, tend to provide the basis for more overarching business income statements.
That’s not to assume that keeping track of every tiny transaction is a simple task. Documents contained within a general ledger occur a daily basis for most businesses. And without the proper vehicle for housing all that financial evidence, experiencing major mapping holes and mishaps can be all too common.
But with the aid of the General Ledger Spreadsheet from MyExcelTemplates.com, business owners can:
- Record dates, descriptions and type of tender used for up to nine different company cash transactions.
- Assemble the e.vidence for completing an overarching future income statement.
- Harness the power of altering or adding to the General Ledger Spreadsheet within the Excel frame. Users can customize the template to their individual company frame.
Tips for Turning the General Ledger Spreadsheet into a Full-Fledged Income Statement
- Be sure to document every tiny transaction that crosses your company’s path. These cash receipts will provide the backbone for the bulk of your income statement. Don’t forget to mark the exact date, description and kind of account.
- Specify the type of tender used. Be sure to indicate if the transaction was completed via debit or credit, as credit will present an entirely new financial variable.
- Understand how each expense compares to your overall loss stream. Be sure to categorize the transaction by the kind of expense it is, and keep close note of that.
- Transition your General Ledger Spreadsheet into an income statement. Although marking your company’s major sales and spending forecasts will be somewhat time consuming, the General Ledger Spreadsheet already contains the evidence you’ll need to form a thorough report.
Download: General Ledger Spreadsheet