How to Write an Accounting Report



Accounting is not an easy field for some people to master; however, the mark of a good accountant is the ability to write a good report with clear and easy recommendations. The best way to do this is with a report which shows trends in spending by comparing the budget forecast to actual spending. This can be done at the end of each month (month to month comparison), quarterly, or annually.

Determine the audience for the report. If the report is for one person it can contain more information than a report for a group or department. Know how much information your audience knows about the data being presented.
Decide on a time frame for your report. You can highlight the current month, discuss the entire year, or even the past five years in your report. The purpose and time period for the report should be clearly stated in a quick executive summary.
Obtain a list of all accounts as well as the spending that goes along with these accounts for the time period the report is covering. The current spending reports are referred to as "Actual Spending."

Compare "Actual Spending" with "Budgeted Spending." Start with the accounts that have the largest discrepancy between actual spending and budgeted spending. The discrepancy can either be over budget or under budget. Create one section of the report to discuss the over budgeted items and another to discuss the under budgeted items.
Create a section called "Recommendations." Based on the information discussed in the comparisons of actual spending to budgeted spending, create at least three recommendations for your client or employer.

Comments

Popular posts from this blog

Customized Essay

Sports Science Fair Project Ideas

How to Increase Education Percentage in India