Accounting Cycle!

Accounting cycle is the name given to the collective process to record and process the accounting policies of the organization. A series of steps initiated once the transaction has been executed and integration with the financial statements has been completed.Accounting cycle, is generic name given to the process of registration and treatment of accounting practices of the company. Series of steps in which transaction with financial statement completed, Integration begins. Such as the balance of general accounting, additional accounting for documents that is used in accounting cycle.

The accounting cycle often described as a process that includes the following steps: documents and transaction identification, collection of transaction are recorded in the journal, analysis, values prepare instead of general accounting and subsidiary books create an non adjusted trial chart, perhaps prepare the spreadsheet, creation and registration of entries, creation of revised trial chart, preparation of financial statement, preparation of the inclusion of the end of the year balance and opportunity after the integration and placement test, close the entry.

Steps of accounting cycle:

An organization started logging transaction and their account cycle using log entries. Entries based on credit, receipts of invoice, which lead to sale and other economics events. According to journal posted in individual account in the ledger is to prepare non adjusted trial chart. Total debit balanced test to ensure that the total credit of financial records are equal. It is entered at the end of the time. This is the result of the correction, the result of passage of time. For example an adjusted entries can earn interest that has been earned based on the basis on time.

Preparing by submitting prepared as personalized itinerary to monitor the financial statement to the company in business. By closing the entries at the end of the season-income and expenditure temporary entity will prepare the account. The entrance to this account bring net profit above the retained earning, Finally in order to guarantee debit and credit, prepare the company, which is the balance after the closing.

Timing of accounting cycle:

The accounting is the name given to the collective process to record and process the accounting policies of the organizations.The accounting cycle is initiated and completed during the accounting period. Time is a predetermined period including monthly, quarterly and the fiscal year. Transaction are added during the accounting cycle, but the balance in accounting period is usually completed at the end of the accounting period. Public institutions must submit financial statements on a specific date. Therefore, it is accounting cycle lists the reporting requirements.

Concepts of accounting cycle:

The accounting cycle is the name given to the collective process to record and process the accounting policies of the organizations. A series of steps is initiated once the transaction has been the executed and integration with the financial statements has been completed.

Accounting consist of several consecutive activities, this includes identifying, recording, classifying, summarizing and disclosing financial transaction. The next step in accounting is called the accounting process. The accounting process takes the forms of a cycle. Step-wise accounting activities are done in a circular order. Circular order are started at the beginning of the transaction until financial result are received by setting up the final account at the end of the accounting cycle. This cycle follows the same sequence every year.