Learn the eight steps
1. You have to analyze transactions to make sure you get them in the right account.
2.Next, you journalize the transactions, making sure to include the dates and proper accounts
3.Post each transaction to the proper account and make sure you include the post reference.
4.Transfer all information and handle any adjustments into the worksheet. This makes information more useful and accessible.
5.Fill out the income statements and balance sheets, making information easily accessible.
6.Make sure all adjustments added to the worksheet are journalized accurately. Also, close all temporary accounts so that they start at zero for the next fiscal period.
7.Transfer the new journalized entries to the ledger.
8. Using the new balances on the Ledger, transfer all accounts with a balance for a final check of balances
Why is it important?
Some more visuals
Garunteed to keep your company on track
Learn the steps! http://www.myaccountingcourse.com/accounting-cycle/
Watch a video! https://www.youtube.com/watch?v=gmLMvRBJQ0M