A “TSM” or Technical Accounting Memorandum Template is an accounting document that can be utilized to create and maintain a log of financial information for any company. These templates usually have a specific format in which to properly set them up for use. A template should be used to ensure consistency within the financial documentation as well as its organization. This means that the same information should be documented over again in a systematic and organized manner. It is also useful in that the documentation is essentially “self-explanatory”. This will save any company a lot of time when it comes to filling out the various forms and receipts required.
When using a template, it is best to make sure that the name of the company being documented is included. By doing this, you will eliminate any possibility of confusion when a different company is actually seen by an auditor. The next thing that needs to be done is to put in the company’s name and the type of business that it is. For instance, if your business is a restaurant, it should be listed as a dining establishment in the document. There should also be a line item for the company’s balance sheet and a line item for the income statement. Depending on the nature of the business, there may be a few other items to put in place.
Any financial data that is to be documented should be organized within the document in a way that makes sense. There should be a table of contents so that all of the relevant information can be easily found and accessed throughout the documentation. A good template will require that there be a table of contents, as well as possibly subtopics such as corporate finance, business valuation, cash flow analysis, profit and loss analysis, breakeven analysis, and business plan.