Types of Accounting Forms? [ Objectives, Types, How To, Tips ]

Accounting is a process of recording, classifying, summarizing, and keeping financial accounts of business organizations. By accounting, businesses are able to get information about incomes, expenses, possible losses, actual losses, assets owned, liabilities outstanding, etc.

Accounting forms are used to record and report these economic transactions that are a combination of accounting registers. These are also used to depict the financial condition of a company and to manage the business in avoiding or eliminating costly mistakes.

The Objectives of Accounting Forms

All business organizations have their accountants who are responsible with the book keeping, recording, and producing reports with business accounting forms. Here are some objectives of using an accounting form:

• to maintain cash accounts and identify cash balance
• to record day-to-day transactions with the use of Journals
• to find out the exact amounts of the following using Ledger Accounts:
  • incomes and expenses
  • gains and losses
  • receivables and payables
• to furnish information of purchases and sales
• to confirm that book of accounts are accurate
• to identify the net profit/loss, surplus or deficit
• to track the total capital of specific date
• to calculate the overall cost productions

The 5 Main Types of Account in Accounting

The main types of accounts in accounting are:

• Assets: these refer to the property or benefits which have value and available to meet debts, legacies or commitments, that are owned by the company.
• Liabilities: these refer to the financial obligations, debts or dues.
• Equities: these refer to the value of stocks and shares issued by the company that carry no fixed interest.
• Revenues: these refer to the income or earnings of a business organization.
• Expenses: these refer to the cost required or the amount spent on some important resources and are tracked and recorded using the accounting expense forms.

How To Write an Accounting Form

Accountant and finance officers are not only tasked to write or keep record of all transaction details, they are also tasked to analyze and evaluate data or scenarios. In doing so, they should come up with a conclusion and make recommendations which are documented and collected.

In writing accounting forms, all information that are recorded or documented should be concisely written because these reports or records play an essential role in a business organization. This is also used to determine the level of business with regards with cost for their business operations. To see examples of how accounting forms are written, see blank accounting forms.

Tips on Writing an Accounting Form

And since accounting and finance officers spend much time in writing or documenting reports, it is important that they practice procedures in effective writing. In writing an accounting form, the following are some tips that should be noted by individual accountant or finance officer:

• the accountant should be aware of the appropriate audience/s
• the purpose should be indicated clearly
• the content should be written in an accurate and timely manner
• the information should be written concisely and clearly
• the information should be organized or in order
• the guidelines or format in writing should be followed
• the written report should be polished and that means there should be no error that can be found