Step of the accounting cycle

Step of the accounting cycle

The next step is to document what each transaction was for with the amount, date and why the transaction was made. The next step is to translate over to the ledger accounts. All the ledger account comes over on to the trial balance which the debits and credits should equal out if not there is a mistake somewhere on the first three steps of the process. Next step is to check over and record adjusting account amounts. These amounts are the depreciation amounts of accounts that are paid for multiple months ahead.

After that step is to prepare the adjusted trial balance which should equal out as well if not there are misleading information on the accounts. In this step the business record salaries expenses and service revenues. The next step is to prepare the financial statement report. On this report the business record expenses and revenue for that period of time. This step shows the net income which should be a positive amount to increase the total income of the business. The nest steps are the final steps.

Please follow and like us:
Haven’t found the essay you want?