These are the steps
The Accounting Cycle
1. Analyze Transaction- Transactions can include the sale or return of a product, the purchase of supplies for business activities, or any other financial activity that involves the exchange of the company’s assets
2. Journalize- The transaction is listed in the appropriate journal, maintaining the journal’s chronological order of transactions.
3. Post- These accounts are part of the General Ledger, where you can find a summary of all the business’s accounts.
4. Prepare Work Sheet- you look for errors and make corrections called adjustments, which are tracked on a worksheet.
5. Prepare financial statements- The financial statements are the end-products of an accounting system.
6. Journalize adjusting and closing entries- The general journal is also used for correcting posting errors made to other journals and for posting transactions
7. Post adjusting and closing entries- Closing entries are based on the account balances in an adjusting trial balance.
8. Prepare post-closing the trial balance- the post closing trial balance is a list of accounts or permanent accounts that still have balances after the closing entries have been made.