Worksheet and Its Importance

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on May 02, 2023

Errors are often made when preparing a trial balance, journalizing or posting adjusting entries, and preparing financial statements.

Once these errors are recorded in the journal, ledger, or trial balance, which are formal and permanent records, considerable time and effort must be expended to correct them.

One of the best ways to avoid errors and also to simplify the work to be done at the end of a trading period is to use a worksheet.

A worksheet is a columnar statement containing the different types of information required at the end of a trading period.

The worksheet is not part of the permanent accounting record. It is prepared in pencil on a large sheet of paper by the accountant for his own convenience.

If an error is made on the worksheet, it can be erased and corrected much more easily than an error in the permanent accounting record.

Worksheets are basic forms on which accountants arrange the information needed to prepare financial statements. As such, worksheets are an accountant’s working tool.

Worksheets are designed so as to minimize errors by automatically bringing to light many types of errors that might otherwise end up in the general journal and, in turn, be posted to the ledger accounts.

Importance of Worksheets

The following points account for the importance of worksheet:

  • Worksheets simplify the work to be done at the end of the accounting period
  • Worksheets help to avoid entering errors in the permanent record of accounting
  • If an error is made on the worksheet, it can be corrected easily

Worksheet and Its Importance FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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