What is the Accounting Cycle?

What is the accounting cycle? The accounting cycle is a sequence of steps that occur in the accounting period and include the processes of identifying, collecting, analyzing documents, recording transactions, classifying, summarizing, and reporting financial information of an organization.

Steps of Accounting Cycle

The steps of accounting cycle include the processes of identifying, collecting, analyzing documents, recording transactions, classifying, summarizing, posting, and preparing trial balance, making journal entries, closing the books and final reporting financial information of an organization. Use the ConceptDraw PRO with Accounting Flowcharts Solution to create your own professional Accounting Flowcharts of any complexity quick and easy.

Steps in the Accounting Process

Steps in the Accounting Process - The Accounting Process is a sequence of organization activities that is used for gaining quantitative information about the finances. This complex process consists of a set of sequential steps. 9 steps in the accounting process: Analysis of Business Transactions, Make Journal Entries, Post to Ledger Accounts, Prepare Trial Balance, Make Adjusting Entries, Adjusted Trial Balance, Prepare Financial Statements, Close Accounts, Post-Closing Trial Balance.