The Steps to the Accounting Cycle - 1007 Words

The accounting cycle refers to the process by which companies produce their financial statements for a specific period of time. It is called a cycle because the steps are repeated each reporting period. The organization at which I am employed completes its accounting cycle monthly. The organization is a privately owned nursing facility licensed and incorporated in the state of Virginia that has been in business since 1966. An explanation of the overall accounting cycle at the organization including a description of the people, processes, and systems that are integral to the cycle will follow. The organization currently employs 130 employees in a departmentalized system. Each department is supervised by a department director who is†¦show more content†¦At the end of each month a trial balance is printed along with a first run of the general ledger and the administrator/owner and I each receive a copy. The administrator/owner or I will then go through all of the different accounts information and perform the fifth step of the accounting cycle which is preparing the adjusting entries and inputting the entries into the accounting system. These adjusting entries usually include such things as depreciation expense, petty cash reconciliation, revenues that have been earned, bank interest, CD interest, liability insurance adjustments, and payroll taxes. Once all of the adjustments are entered and checked the sixth step of the accounting cycle is completed with the preparation of the adjusted trial balance. Once this is checked, final copies of the financial statements are printed and filed with the appropriate annual reports. These reports include an income statement, statement of retained earnings, and a balance sheet. A year to date report will also be printed with a breakdown by census so that we can assess our financial situation and make any adjustments such as increasing prices or adjusting staffing levels among other things. The final step of our accounting cycle is closing out the period and starting the new period. Our information systems program allows us to close out the period and set up for the new period easily by telling the computer to performShow MoreRelatedThe Full Accounting Cycle And Present A Quick Synopsis Of All Of The Steps1049 Words   |  5 Pagesdiscuss the full accounting cycle and present a quick synopsis of all of the steps along with a brief description on how it can impact a business’s success. The role of each step and why each step is critical in this process will also be explained. The omission of a step, no matter how small, could negatively impact the financial security of a business. The four basic financial statements and why they are important will be the final segment in discussing the full accounting cycle. The point of theRead MoreThe Two Principles Of Accrual Accounting891 Words   |  4 Pages In order to fully understand the accounting cycle and complete all eight steps, an accountant must understand the adjusting and closing process and be able to prepare trial balances. The unadjusted, adjusted, and post-closing trial balances are all prepared during the eight step accounting cycle. In order to maintain the most accurate financial statements, accrual accounting should be used. Accrual accounting is an â€Å"accounting method that records revenues when earned and expenses when incurred withoutRead MoreAccounting Cycle Paper690 Words   |  3 PagesAccounting Cycle Paper Acc 421 Date Accounting Cycle Paper Accounting is a financial information system designed to record, classify, report, and interpret financial data. 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The first step in the accounting cycle is to collect all the documents relatedRead MoreAcc 201 Final Project Part I Accounting Cycle Report1280 Words   |  6 Pages ACC 201 Final Project Part I Accounting Cycle Report Saheed Alabi Southern New Hampshire University â€Æ' The purpose of accounting cycle report is to keep the best accounting records up to date. It also assist in producing the best possible financial statement that shows the true pictures of the business or organization and help making a good call whether business is profitable or not. Journal Entries: This is the first step in accounting cycle and are used to record all business transactionsRead MoreThe Purpose Of This Paper Will Be Identifying The Steps1417 Words   |  6 Pagespaper will be identifying the steps of the accounting cycle and providing a brief description of each step that companies take to create their financial statements. Further discussion will explain what role each step plays in the success of a business. Plus, further discussion will be how omission of a step could impact the success of a business, and what strategies could be used to avoid this. Finally, the major financial statements that come out of the accounting will be discussed, as well as theirRead MoreThe Accounting Cycle1035 Words   |  5 PagesThe Accounting Cycle Presented to Ms. Aisha Meeks Department of Business Management College of Business Administration Alabama State University In Partial Fulfillment of the Requirements for the Course ACT.214.04 By Krystal Hall January 26, 2013 Memo: To: Ms. Aisha Meeks From: Krystal Hall Date: 2/26/2013 Re: The Accounting Cycle Every company has an accounting cycle. An Accounting cycle is the process that begins with analyzing and journalizing transactions and it ends withRead Moreacct closing process1190 Words   |  5 Pagesupcoming accounting period, and 2. 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Accounting also deals with recording, transactions, creditsRead MoreAccounting Cycle Paper924 Words   |  4 Pages| Accounting Cycle Paper | Accounting Cycle of Walmart | | Melanie Bartholomew | September 2, 2012 | When a company, like Walmart, begins to prepare financial statements and reports at the end of an accounting cycle they generally use Generally Accepted Accounting Principles and â€Å"the collective process of recording and processing the accounting events† (Definition of ‘Accounting Cycle’, 2012), known as the accounting cycle. There are nine steps involved in the accounting cycle. Walmart