Balance of sums and balances What does it consist of?

If you have wondered what the balance amounts and balances, then you have come to the right place, since in this interesting article, you will be able to find everything you need to know about this important topic.

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Balance amounts and balances

Also called by the name of trial balance, it is a document used in accounting, in which the most important accounts are listed, which are prepared at the end of a certain established period. Which contains account movements, the balance in red or green numbers of economic operations, which affect or perform people in a work identity.

The purpose of the trial balance; It is to check the expenses and movements that exist in a bank account associated with a company or person, and to be able to corroborate and optimize the expenses that can be made in a given time. Another objective may be to avoid dirty money movements.

Worksheets and balance sheets of sums and balances.

We have to consider that the balance amounts and balances, is a way of checking, through a worksheet, which is a very useful tool, it can also be called, work status. It is a file that works as a draft, in which all the accounts made by the company are kept.

It is a file that is used as a draft, which provides the client with a table that indicates the financial statements. It acts as a guide, so that the expenses of a business can be made quickly, since with it, you can have a history of each payment, bonus, etc.

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How is the format of the balance of sums and balances?

El balance amounts and balances, it has to be done in a worksheet, this is based on a sheet divided into 12 columns. It should be noted that, depending on the needs of the company, worksheets could be made that are lower or higher in number of columns. It all depends mostly on the scenario in which it needs to be done.

In normal situations, they are usually handled between 12 and 14, therefore, we will proceed to explain what the objectives that need to be located in the respective columns are, among which the following are fundamental:

  • Header (1): It is formed by the name of the company or the client, the name of the document and the date on which the analysis is performed.
  • Order number of the accounts (2).
  • Name of the accounts with their code (3).

How to fill out the form?

After having completed these boxes, we proceed with the others, which is where the change of boxes mentioned above comes from, the most common are the following:

  • Trial balance (4): It is found in column number one and two, in which the verification of the movements and balances, whether they are debts or income in both parties, is recorded.
  • Settings (5): Found in the fifth and sixth columns, they are normally used to add credits and charges.
  • Adjusted balances (6): The seventh and eighth columns are used to indicate salaries or payments with adjustments.
  • Gains and losses (7): In columns nine (charges) and ten (credits), records of gains or losses are recorded.
  • Balance prior to the balance sheet (8): Columns eleven (debts) and twelve (creditors), are used to place the remaining amounts, after having recorded each loss and/or gain.

An example of what a worksheet might look like

Objective of the balance of sums and balances

Definitely, if you are an accountant, you should be aware of the existence of this table, due to the fact that not only is it a standard in accounting, but it is also a very useful tool when trying to keep a good organization, to be able to plan or avoid blurring the direction, as well as allowing the optimization of resources and economic opportunities.

The worksheets, together with the trial balance, are an indispensable tool in the way in which we can keep track of the state of a company, as well as we can also take advantage of it to be able to make future plans, in addition to the preventions, in case there may be future inconveniences.

Importance

El balance amounts and balances, allows us to make the necessary corrections at the most opportune moment, it is one of the tasks of anticipating and creating in a counter, and carrying out the corresponding adjustments, to act according to each situation, which is an ability that should be achieved. be a priority, if your idea is to monitor your business as much as possible.

One of the most important things about it is to always be in direct contact with the person you work with. Always be aware of the situation, share opinions and facts about the direction to take in an opportunity or economic disadvantage, which is beneficial for both parties.

Remember that a good record and excellent administration will allow you to have better control of your company or business, since you will know how to act in each situation, in which the economic situation varies.

If you want to know a little more about the world of finance, then I invite you to read this interesting article: Economic factors.

Thank you very much for reading the article to the end, we hope it helped you learn something new. And if you want to expand on this incredible topic, you can watch the video that we leave you below.


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