By : Michael Martin
The 8 Steps of the Accounting Cycle
1. Analyze Transactions- Determine the transaction amount, which accounts are affected, and in which direction.
2. Journalize- The transaction is recorded in the journal as a debit and a credit
3. Post- The journal entries are transferred to the appropriate T-accounts in the ledger
4. Prepare Work Sheet-
5. Prepare Financial Statements-
6. Journalize Adjusting and Closing Entries-
7. Post Adjusting and Closing Entries-
8. Prepare Post-Closing Trial Balance-
For more information visit these sites
If you want to learn more about how the accounting cycle works or even just an example of the accounting cycle, then check out this YouTube video on how the accounting cycle works.
Links for more information: