Learn the simple steps to the accounting cycle. By: Josh K.
Step 2. Journalize
Transactions are then listed in the accounting journal in the appropriate section.
Step 3. Post
After, transactions are then posted into the account that it impacts. These accounts are also part of the general ledger.
Step 5. Prepare financial statements
You prepare the balance sheet and income statement using the correct account balances.
Step 6. Journalize adjusting and closing entries
Take the information from the work sheet and add in adjusting temporary accounts and permanent accounts.
Step 8. Prepare post-closing trial balance
At the end of the accounting period( which could be a month, quarter, or year) a business prepares a trial balance.