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.
Accounting deals with lots of money and accounts.
Basic account in accounting. Debit on the left, Credit on the right.
You can get jail time for recording false numbers and stealing money from a company.
The Accounting Cycle