There are a series of steps that are integral to any accounting cycle and are constants regardless of the business type or number of employees. These steps must be performed each and every time data is manipulated, reported and used in a business. The first of these is probably the one most are very familiar with and this involves recording all financial transactions in a journal. While there are many different journal types, there is a journal that is ideal for all transactions. In addition to assisting with your returns and preparation of other financial statements, we offer consultancy that can help train staff on the best accounting practices for your organization.
After completing the journal, the next step is to post these entries to the ledger. The ledger is the book that contains all the accounts that your business uses. After the ledger is completed, the next task in the accounting cycle requires that you prepare a trial balance. This is one of the tasks that we often handle is the reason we prefer to build good working relationships and offer consultant advice to ensure you work gets completed fast.
With the above steps already completed the accounting cycle is as good as complete especially since all that remains is a series of checks and balances to ensure all entries have matches in the proper books. To ensure this is all according to regulations we use the best accounting software. The advanced software allows us to catch mismatching entries and adjust the books to ensure that all the statements for each fiscal year are accurate and have been verified. Once these adjustments have been made, the post-closing trial balance is prepared.
With all the above steps properly completed, we then begin preparation of the relevant financial statements. These will vary depending on needs and the organization type but include balance sheet, income statement, owner equity statement and cash flow statement. It is very important to note that all the information that is summarized in these financial statements is the culmination of all the entries in your journals and ledgers. It is for this reason that we believe in collaboration in financial accounting services to build your business from within.