The Accounting Cylce
8 Steps for Easy Accounting
In chronological order, place each transaction in the appropriate journal.
Next, is to prepare a worksheet. It is also known as an extended trial balance. It helps understand what adjustments are made, what accounts are affected and by what amount.
This is where you adjust and close the journal entries for the past fiscal period. Temporary accounts are set to zero and permanent accounts just accumulate into the next period.
After everything has been completed, your last step is to create another trial balance just to make sure your debits and your credits are equal.