Recording Transactions in a General Journal, Page 4

Steps in an Accounting Cycle

The accounting cycle is a recurring process and has nine steps.

The steps in the accounting cycle are: 

1. Identifying transactions and verifying the sources of documents 
2. Analyzing transactions 
3. Journalizing each transaction 
4. Posting journal entries to a ledger 
5. Preparing a worksheet 
6. Preparing a trial balance 
7. Preparing a financial statement 
8. Entering closing entries and posting the closing entry 
9. Preparing a post-closing trial balance

In the following pages, we’ll look at the first three steps.