Acounting Cycle

learn the steps to the accounting cycle.

8 Simple steps.

The 8 steps are,

  • Analyze transactions and look over all the account details.
  • journalize by putting the transactions into the general journal properly.
  • Post to ledger so that you have back up records and don't make mistakes with account totals.
  • prepare a work sheet to show your assets and liabilities.
  • next up you have to prepare a financial statement to have formal records of the financial activities.
  • journalize adjusting and closing entries to show the changes made to accounts.
  • post adjusting and closing entries with the new account totals.
  • Prepare a post closing-trial balance which is totaling your remaining accounts.
The Accounting Cycle