Major Steps in Accounting Cycle
Following are the major steps involved in the accounting cycle. We will use a simple example problem to explain each step.
1.Analyzing and recording transactions via journal entries
2.Posting journal entries to ledger accounts
3.Preparing unadjusted trial balance
4.Preparing adjusting entries at the end of the period
5.Preparing adjusted trial balance
6.Preparing financial statements
7.Closing temporary accounts via closing entries
8.Preparing post-closing trial balance