Most bookkeeping templates contain a chart of accounts, current assets, fixed assets, current liabilities and long-term liabilities. Other information includes the business owner's equity accounts, sales revenue, all expense accounts, gains and losses.
Bookkeeping templates in a computerized software program generate balances as the user enters transactions. This type of template is usually updated once a month with a page dedicated to each account. The bookkeeping template is the collection of all accounting documentation, including invoices, checks and cash. This template is engineered to calculate and summarize information about the accounts, while special accounting journals contain the specifics of each transaction.
Accounting journals are used every day for every financial transaction in chronological order and include the date, amount and relevant accounts affected. Types of journals include sales journals, cash receipt journals and cash disbursement journals. All journals are then combined into the bookkeeping ledger, which contains entry points for all the information. Each transaction is balanced in the debits and credits column.
The main bookkeeping ledger is developed based on the company's chart of accounts. The chart of accounts is a long-term accounting plan that takes up to 10 years of accounting needs into consideration. It is a flexible plan, because changes occur as the business grows or expands. The chart of accounts is organized in the same way that the bookkeeping template is organized.