What is an Accounting Form

Accounting is an important area of finance and it constitutes various sub areas like book of accounts or double entry book keeping, profit and loss statements, assets and liabilities, balance sheet, spread sheet, expense records, ledger records, and much more. All these information pertaining to a business or an organization is stored in an accounting form. Some of the large businesses or conglomerates require multiple accounting forms while small and medium sized businesses require a single accounting form.

An accounting form is data driven and shows the exact financial condition of an organization or business. Filling an accounting form requires some level of knowledge and expertise and is commonly done by accountants or even chartered accountants. There are several sub-categories in an accounting form and the five main categories include:

  • The basic invoice category: This category of accounting form is used by medium to large sized businesses. It is prepared by the accountant and is a type of billing form. It is sent to a client, customers, or even a consultant post the sale of specific products or services.
  • Petty cash log: This is another category in an accounting form that is primarily used for identifying and calculating the various deposits and withdrawals made from the business petty cash account within a financial year.
  • General journal: This type of information in an accounting form helps in tracking the financial expenses incurred by an organization in a financial year.
  • Purchase order: This category exists in most accounting forms and it is used for keeping records of all orders and transactions made by a firm to or with a vendor within a financial year.
  • Inventory turnover ratio: This is one of the most important categories in the accounting forms and has to be maintained on a regular basis. It helps a business in computing the inventory turnover ratio, which is important for businesses selling products or goods.

All accounting forms require company information without which they are incomplete. Some of the business information include registered name of the business, registration number, nature of business, location or country of business, and earnings before and after tax and interest.

Category: Sample Forms

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