The Accounting Cycle

Go around the accounting cycle

Accounting Cycle Steps:

  1. Analyze transactions - check what accounts are being used and how many accounts there are.
  2. Journalize- Take the accounts put them according to date and list them in with the correct amount
  3. Post- post all of the accounts from the journal and see how it turns out.
  4. prepare work sheet- add the adjustments and the new balance in the worksheet to make it balance and to show that its accurate .
  5. Prepare financial statement- get all the information and put it on financial statement to know the owners equity, etc.
  6. Journalize Adjusting and Closing entries- At the end of the month get all of the information need to remove and to keep journalized and keep records clean
  7. post adjusting and closing entries- posting adjusting entries and closing entries helps keep all of the records accurate and up to date.
  8. prepare post closing trial balance- in this form of document you need to put all of the accounts to see if all of your totals match up.
The Accounting Cycle