Benefits of a Work Sheet (Spreadsheet)
Aids the preparation of financial statements.
Reduces the possibility of errors when working with many accounts and adjustments.
Links accounts and adjustments to their impacts in financial statements.
Assists in planning and organizing an audit of financial statements — as it can be used to reflect any adjustments necessary.
Helps in preparing interim (monthly and quarterly) financial statements when the journalizing and posting of adjusting entries are postponed until year-end.
Shows the effects of proposed or “what-if” transactions.
Preparing the work sheet has five important steps