What are the top small business forms for accountants?

Accountants are the backbone of a properly functioning small business. They keep track of financial records, prepare tax documents, and provide valuable advice to their clients. If you're an accountant yourself, you are quite literally the bee's knees.

But what does such a job involve? For the most part, it involves keeping your thumb to the pulse of important financial functions like tax, wages, and cash flow. That means maintaining a neat record of documents – and a wide range of documents, at that.

Every small business needs a core set of documents in order to run smoothly. Let's discuss the top 10 forms that are essential for all accountants to have for their small business clients in 2024.

What are accounting forms?

Accountants and CPAs are responsible for the collection and maintenance of financial records. This includes keeping track of payroll information, taxes, accounts payable and receivable, audit reports, and more. As an accountant for small businesses, you provide the necessary forms to clients to properly document their finances.

These documents are known as accounting forms or financial statement forms. They help maintain accurate records which can be used to make informed decisions regarding money matters such as budgeting and tax planning.

For a long time, accounting forms were purely hard-copy and manually processed. Record books were maintained by hand for hundreds of years, then the printing press made it easier to access forms. Nowadays, due to the digital revolution, most accounting documents are created on computers or via online software programs.

Accounting software like Bonsai is becoming increasingly popular among small business owners. It allows for automated calculation of financial data and makes filing taxes significantly easier.

How accounting forms benefit accountants

It takes a lot of time and effort to keep track of every financial detail related to a small business. Accounting forms help streamline the process by providing an easy-to-use template for data entry and calculations.

By using accounting forms, accountants are able to save time on manual calculations and ensure accuracy in their work. Forms provide them with much-needed documentation that can be used for future reference or during audits if necessary.

Other benefits include:

• Time savings by reducing manual calculations
• Increased accuracy in financial records
• Proper documentation for audits
• Ease of future reference

• Analytics. Particularly if you use automated accounting software, you can run analytics on the data entered in forms to better understand the health of your client's businesses and make more informed decisions.
• Fraud detection and prevention. Accounting forms are a great way to detect any suspicious activity in your client and employee finances. You can easily spot discrepancies or red flags if you have access to the right data and documents.
• Tax preparation. One of the most important tasks for accountants is preparing tax returns, and this requires accurate financial statements, which can be obtained via accounting forms.
• Bank rapport. Having accurate and up-to-date financial records is essential for getting loans from banks or other lenders – and they're more likely to work with you if your paperwork is in order.

With the right documents prepared and maintained, the financial health of your business will be in top form.

Accounting forms essential for small businesses in 2023

Every business is going to prepare its accounting forms a little differently; for instance, you're going to add your own branding, services, and prices. However, you'll find that there's a core set of crucial documents most (if not all) small businesses need. Here are the top 10 that you should be familiar with as an accountant.

1. Profit and loss

The success of your business relies heavily on money going in vs money going out of your accounts. The Profit and Loss statement is a document that captures these details in an easy-to-read format; you'll want to maintain these records for legal reasons as well as for your business growth and improvement.

2. Balance sheet

Want to see how your business is faring at any given point in time? The Balance Sheet captures the total assets and liabilities of a business as well as any differences between them. This document is used to ensure that your financials are in order, so you'll want to keep this one up-to-date with all transactions.

3. Accounts receivable report

The Accounts Receivable report is an important tool for tracking money owed by customers or clients; it's also very useful for evaluating credit risk when needed. As an accountant, keeping tabs on these documents will help you maintain a better relationship with customers and make sure payments come in on time.

4. Cash flow statement

The Cash Flow Statement is a summary of all cash inflows and outflows from your business. It's essential for understanding liquidity, which can help you determine the financial health of your small business.

5. Business plan

If you're looking to secure investments or loans, have a well-written business plan. It should include details about the company’s mission and objectives as well as strategies for achieving them. This document provides investors with an overview of where their money is going and ensures everyone is on the same page financially.

6. Purchase approval form

The Purchase Approval Form documents the amount of money spent on a purchase, who authorized it, and why. This form helps you trace errors back to their origin and keeps track of who is spending what and for what reason.

7. Daily inventory form

Many small businesses have an inventory that fluctuates from day to day. The Daily Inventory Form captures the details of what's being bought and sold, so you can ensure that your records are always up-to-date.

8. Credit card payment form

If a client or employee needs to change their credit card information, having a Credit Card Payment Form streamlines the process. It provides clients a quick and easy way to update their payment information.

9. Fuel requisition form

The Fuel Requisition Form allows you to track the amount of fuel being used by your business – which is particularly helpful for those who use a lot of fuel in their operations, like tradespeople and delivery drivers.

10. Client tax information form

Finally, the Client Tax Information Form helps you keep track of your clients' tax details to use when the time comes. This includes their name, address, Social Security number or taxpayer identification number, and any other important data that might be required for filing taxes.

As an accountant, have these forms on hand to manage your business and stay organized throughout the year. Keeping these documents up-to-date ensures everything runs smoothly and accurately, leading to better financial health for everyone involved.

Depreciation and amortization forms

Understanding depreciation and amortization forms

Depreciation and amortization forms are essential accounting documents that help track the reduction in value of your business assets over time. Depreciation applies to tangible assets like equipment or vehicles, while amortization covers intangible assets such as patents or software licenses. These forms summarize how much value has been used up each year, which affects your taxable income and financial statements.

For freelancers and small business owners, using the correct form ensures compliance with IRS rules and accurate bookkeeping. IRS Form 4562 is the primary form to report depreciation and amortization expenses for assets placed in service during the 2024 tax year. Filling this form correctly can reduce your taxable income by spreading asset costs over their useful lives.

To stay organized, maintain detailed records of purchase dates, costs, and estimated useful lives of assets. This information will make completing depreciation and amortization forms straightforward and help you avoid costly errors during tax filing.

How to fill out IRS Form 4562 for depreciation

IRS Form 4562 is the standard accounting form used to report depreciation and amortization on your tax return. List all qualifying assets placed in service during 2024, including their purchase price and date. Then, select the appropriate depreciation method, such as the Modified Accelerated Cost Recovery System (MACRS), commonly used for most business assets.

For example, if you purchased a laptop for $1,200 in March 2024, you would enter this on Form 4562 under Section B. The MACRS method allows you to depreciate the laptop over five years, spreading the deduction across tax years. Using accounting software like QuickBooks or FreshBooks can simplify this process by automatically generating depreciation schedules and populating the form data.

After completing the form, attach it to your 2024 tax return. Keep copies of all supporting documents, including invoices and asset lists, for at least three years in case of an IRS audit. This practice ensures your depreciation claims are verifiable and compliant with current tax laws.

Using amortization schedules for intangible assets

Amortization forms track the gradual expense recognition of intangible assets like trademarks, copyrights, or software. Unlike depreciation, amortization typically uses a straight-line method over the asset's useful life, often 15 years for many intangible assets under IRS rules.

To create an amortization schedule, list each intangible asset with its purchase cost and estimated life span. For instance, if you acquired a software license for $3,000 in 2024 with a 3-year useful life, you would expense $1,000 annually. Tools like Excel templates or accounting platforms such as Xero can help you build and maintain these schedules accurately.

Regularly updating your amortization schedules and reflecting them on your accounting forms helps you manage expenses and tax deductions effectively. This practice also improves financial forecasting by showing how intangible asset costs impact your profitability over time.

Tips for managing depreciation and amortization records

Maintaining organized records for depreciation and amortization is crucial for smooth tax filing and financial management. Start by creating a fixed asset register that includes purchase dates, costs, descriptions, and estimated useful lives. This register serves as the foundation for completing accounting forms accurately.

Consider using cloud-based accounting software like QuickBooks Online or Zoho Books, which offer built-in depreciation and amortization tracking features. These tools generate reports and forms automatically, reducing manual errors and saving time during tax season.

Finally, review your asset schedules annually to adjust for disposals, improvements, or changes in useful life. Staying proactive with your depreciation and amortization forms ensures compliance with IRS regulations and provides clearer insights into your business’s financial health.

General accounting forms

What are general accounting forms and why you need them

General accounting forms are standardized documents used to record and track financial transactions in any business. These forms help freelancers and small business owners maintain organized records, ensuring accuracy and compliance with tax regulations in 2024. Examples include:

• Expense reports
• Payment vouchers
• Cash receipt forms

Using these forms consistently reduces errors and simplifies bookkeeping. For instance, an expense report form helps track business costs with clear categories, making it easier to claim deductions during tax season. Without these forms, freelancers risk missing important details or losing receipts.

To get started, choose digital templates from platforms like HelloBonsai or Microsoft Office, which you can customize for your specific needs. Regularly updating and filing these forms can save you hours during tax preparation and improve your financial decision-making throughout the year.

How to use expense report forms effectively

Expense report forms document all costs incurred for business purposes, making them essential for freelancers who often pay out-of-pocket. To use them effectively, fill out each expense as soon as it occurs, including date, amount, vendor, and purpose. This practice prevents forgetting details and ensures accurate bookkeeping.

For example, if you buy office supplies for $45, record the purchase immediately on the form, attach the receipt, and categorize it under office expenses. Tools like Expensify or QuickBooks Online offer digital expense reports that automatically sync with your accounting software, streamlining the process.

Make it a habit to review and submit your expense reports monthly. This keeps your records current and simplifies reimbursement if you work with clients or partners. Consistent use of expense report forms also helps during audits by providing clear documentation of your spending.

Using payment voucher forms to track outgoing payments

Payment voucher forms serve as proof of payments made by your business, whether to vendors, contractors, or service providers. They are crucial for tracking outgoing cash flow and maintaining transparency in your accounting records. Each voucher typically includes payment details like date, amount, payee, and reason.

To implement payment vouchers, create a simple template that matches your business needs. For example, if you pay a freelancer $300 for graphic design, fill out the voucher with the payment date, amount, and project description. Keep a copy for your records and provide one to the payee if necessary.

Using payment vouchers consistently helps avoid disputes and ensures all payments are accounted for in your bookkeeping software like Xero or FreshBooks. This practice also supports tax deductions by providing clear evidence of business expenses.

How cash receipt forms improve daily transaction tracking

Cash receipt forms document all incoming cash transactions, which is vital for freelancers and small businesses that accept payments in person. These forms provide proof of payment to clients and help you reconcile your cash flow at the end of each day or week.

To use cash receipt forms effectively, issue one every time you receive cash. Include details such as the payer’s name, amount received, date, and the service or product sold. Digital tools like Square or PayPal Here can generate electronic receipts automatically, reducing manual errors.

Regularly reconciling your cash receipts with your bank deposits prevents discrepancies and improves financial accuracy. This habit also supports tax compliance by maintaining clear records of all income sources, which is especially important in 2024 with evolving IRS reporting requirements.

Break-even point, contribution margin, cost-volume-profit forms

Understanding the break-even point form

The break-even point form helps you determine when your business will start making a profit by covering all fixed and variable costs. It calculates the sales volume needed to avoid losses, which is crucial for freelancers and small business owners planning their finances in 2024. Using this form, you input fixed costs, variable costs per unit, and sales price per unit to find the exact number of units you need to sell.

For example, if your fixed costs are $5,000 per month, the variable cost per unit is $20, and you sell your service at $50 per unit, the break-even point form will show you need to sell 167 units to break even. This calculation helps you set realistic sales targets and pricing strategies. Tools like Excel or Google Sheets offer customizable break-even templates that automatically calculate this when you enter your numbers.

To use the break-even point form effectively, update your costs regularly and review your sales performance monthly. This practice ensures you stay on track and adjust your business strategy if costs increase or sales slow down. Start by downloading a free break-even calculator from sites like HelloBonsai or accounting software like QuickBooks for seamless integration.

How to use the contribution margin form

The contribution margin form calculates the difference between sales revenue and variable costs, showing how much money contributes to covering fixed costs and generating profit. This form is essential for understanding which products or services are most profitable and where to focus your efforts in 2024. It helps freelancers and small business owners make informed decisions about pricing and cost control.

For instance, if you charge $100 for a service and your variable costs are $40, your contribution margin per unit is $60. By entering these figures into the contribution margin form, you can analyze how many units you need to sell to cover fixed expenses and start earning profit. Software like FreshBooks or Zoho Books often includes contribution margin reports that simplify this process.

Regularly using the contribution margin form allows you to identify unprofitable services or products quickly. Adjust your offerings by increasing prices, reducing variable costs, or focusing on high-margin items. Keep this form updated with current costs to ensure your pricing strategy remains competitive and profitable throughout the year.

Applying cost-volume-profit forms for better decision-making

Cost-volume-profit (CVP) forms combine break-even and contribution margin analyses to show how changes in costs, sales volume, and price affect your profit. This form is a powerful tool for freelancers and small business owners to forecast outcomes and plan for different business scenarios in 2024. It helps you understand the impact of scaling your business or adjusting prices before making decisions.

For example, a CVP form can simulate how increasing your service price by 10% or reducing variable costs by 5% affects your profit margin. Many accounting platforms like Xero and Wave offer CVP analysis features that let you input different variables and instantly see the results. This proactive approach reduces risks and improves financial planning accuracy.

To leverage CVP forms effectively, update your cost data monthly and run scenario analyses quarterly. Use the insights to negotiate better supplier contracts, optimize pricing, or decide whether to expand your product line. Incorporating CVP analysis into your routine financial reviews ensures you stay agile and profitable in a changing market.

Financial ratios and analysis forms

How to use financial ratios in accounting forms

Financial ratios provide clear insights into your business’s financial health by comparing key numbers from your accounting forms. Important ratios include the current ratio, debt-to-equity ratio, and net profit margin. These ratios help you quickly assess liquidity, leverage, and profitability without digging through complex reports.

For example, the current ratio divides current assets by current liabilities, showing whether your business can cover short-term debts. If your accounting form shows $50,000 in current assets and $25,000 in current liabilities, your current ratio is 2.0, indicating strong liquidity. Including these calculations directly in your accounting forms or linked spreadsheets streamlines your monthly reviews.

To get started, integrate ratio fields into your accounting form templates using tools like Microsoft Excel or Google Sheets. Automate calculations by linking balance sheet and income statement data, so you can update ratios instantly each month. This approach saves time and highlights financial trends early.

Choosing the right analysis forms for your business

Selecting the appropriate financial analysis forms depends on your business size and industry. Small service-based businesses might focus on profitability and cash flow analysis forms. Product-based businesses should include inventory turnover and gross margin ratios in their accounting forms.

For example, a freelancer could use a simple profit and loss analysis form that calculates net income, while a retailer might use a form that includes inventory turnover ratio, calculated by dividing the cost of goods sold by average inventory. This helps identify slow-moving stock and optimize purchasing decisions.

Many accounting software platforms like QuickBooks, FreshBooks, and Xero offer customizable forms that incorporate these ratios automatically. Using these tools reduces manual errors and ensures you consistently monitor the most relevant financial metrics for your business.

How to create actionable reports from financial analysis forms

Creating actionable reports from your financial analysis forms means turning raw data into clear recommendations. Start by setting benchmarks for each ratio based on industry standards or your past performance. For instance, a net profit margin below 10% might signal the need to reduce expenses or increase pricing.

Use your accounting form data to generate monthly or quarterly reports that highlight ratios trending positively or negatively. Tools like Google Data Studio or Microsoft Power BI can connect to your accounting forms and visualize these trends with charts and alerts, making it easier to spot issues early.

Finally, schedule regular review meetings to discuss these reports and decide on specific actions, such as adjusting budgets or renegotiating supplier contracts. Consistent use of financial analysis forms transforms your accounting data into a strategic asset for growth.

Financial statements forms

What are financial statements forms and why they matter

Financial statement forms are standardized templates used to record and present a company's financial information clearly and consistently. These forms include:

• Balance sheet
• Income statement
• Cash flow statement

They matter because they provide a snapshot of your business’s financial health, which is essential for making informed decisions and securing loans or investors.

For example, a balance sheet form outlines assets, liabilities, and equity at a specific point in time, helping you understand your net worth. Using pre-designed forms saves time and reduces errors compared to creating statements from scratch. Many accounting software platforms, such as QuickBooks, Xero, and FreshBooks, offer built-in financial statement forms that automatically update as you enter transactions.

To get started, choose a financial statement form that fits your business type and size. Consistently using these forms each month or quarter will help you track progress and prepare accurate tax filings for the 2024 tax year and beyond.

How to fill out a balance sheet form correctly

Filling out a balance sheet form requires listing your assets, liabilities, and equity as of a specific date. Start by gathering your financial records, including bank statements, invoices, and loan documents. Enter your assets first, such as cash, accounts receivable, and equipment, using current market values.

Next, list liabilities like outstanding loans, accounts payable, and credit card balances. Finally, calculate equity by subtracting total liabilities from total assets. For example, if your assets total $50,000 and liabilities are $20,000, your equity is $30,000. Many templates in Excel or Google Sheets include formulas to automate these calculations, reducing mistakes.

Regularly updating your balance sheet form each month helps you monitor financial stability and prepare for tax deadlines in 2024. Using software like FreshBooks can also sync your data to generate balance sheets automatically, saving time and improving accuracy.

Using income statement forms to track profitability

Income statement forms summarize your revenue and expenses over a set period, showing your net profit or loss. To use these forms effectively, collect all income sources and categorize expenses such as:

• Rent
• Utilities
• Supplies

Enter these figures into the form, ensuring you include all transactions from your accounting software or bank records.

For instance, if your total revenue for March 2024 is $15,000 and expenses are $10,000, your net profit is $5,000. Many freelancers use tools like Wave Accounting, which provides customizable income statement forms that update automatically as you log income and expenses.

Reviewing income statement forms monthly helps identify trends and areas to cut costs or increase revenue. This practice also simplifies quarterly tax payments and year-end reporting, keeping your finances organized and compliant.

Tips for choosing the right financial statement form for your business

Selecting the right financial statement form depends on your business type, size, and reporting needs. Small freelancers might prefer simple Excel templates for balance sheets and income statements, while growing businesses benefit from integrated software like QuickBooks Online or Zoho Books that generate forms automatically.

Consider whether you need forms that comply with GAAP (Generally Accepted Accounting Principles) or if simplified versions suffice. For example, nonprofits require specific statement forms like the Statement of Activities, which differ from standard business forms. Also, check if your state has unique reporting requirements for 2024, especially if you operate in California or New York.

Ultimately, choose forms that are easy to update, provide clear insights, and integrate with your existing accounting tools. This approach ensures you maintain accurate financial records and make smarter business decisions throughout the year.

Accounting forms for running your own business

It's fairly easy to maintain these forms when you've got an entire accounting department. But what if you're running a one-man show? Which forms are essential for operating your own business?

At a minimum, you'll want to use the following accounting forms:

• Income statement
• Balance sheet
• Cash flow statement
• Accounts receivable ledger
• Accounts payable ledger

• Recurring invoice forms – to streamline payments from repeat clients
• Cash flow statement – to track liquidity
• Inventory tracking form – to keep tabs on what's coming in and out
• Credit card payment form – so you can update information as needed
• Business plan – for securing investments or loans
• Business expenses form – to track costs and make adjustments to your purchasing habits
• Accounts payable and receivable report – to monitor money owed

By keeping up with these forms, you'll be able to keep your business humming along and make sure it stays on the right track.

Should you use accounting software?

Let's face it – keeping track of all these forms can be a challenge, especially if you're dealing with a lot of different clients and invoices.

That's why many small businesses choose to invest in accounting software. These tools typically have an intuitive dashboard you can use to manage all your accounts, and they come with a variety of templates and forms you can easily fill out.

Using an accounting software solution can help you stay organized and on top of everything without having to manually enter data into each form or document. Plus, most solutions are cloud-based, so you won't have to worry about losing important documents if something happens to your computer.

Our solution, Bonsai, is an all-in-one business management tool that has a specific set of functions for accounting and finance. Handle everything from invoicing to expense tracking and payroll with ease.

Wrap up

Forms are an essential part of any accounting job – and this is especially true for small businesses. By keeping on top of the forms mentioned above, you'll be able to ensure that your business runs smoothly and accurately while still maintaining a high level of efficiency.

Don't forget about our library of accounting form templates here at Bonsai, too. Templates take the grunt work out of document creation and maintenance so you can focus on the important stuff. Happy accounting!

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