Accounting Cycle

By Nicole C. Polliard

Steps

There are eight steps in accounting in total. Each have a specialize work sheet created for the step they are used for. The eight steps of accounting are:


1. Analyzing Transaction

Usually contains the numbers that will be used through out the equation. The date, costs and many other important information may be held within these documents.


2. Journalizing

The information stored in the transactions will be placed here in a orderly manner. This includes the dates, costs, names, and other information.


3. Post

The information will be moved once more onto a general ledger. Where the debits and credits will be organized in the correct manner.


4. Prepare Worksheet

Information will be stored in a worksheet. The work sheet will contain the debits, credits, adjustments, net income and the accounts.


5. Prepare Financial Statements

Checks, and balances will be added up and later put in to the journal.


6. Journalize Adjusting and Closing Entries

Place financial statements into the journal. The accounts and other entries will also be placed in here.


7. Post Adjusting and Closing Entries

Every thing will be stored in a General Ledger. Entries will be closed in this part of the accounting cycle.


8. Prepare Post-Closing Trail Balance

Information will be saved on a Post closing trail Balance.