Record keeping or the data transformation process is called the accounting cycle, and there are nine steps to this:
1.Preparing transaction source documents.
2.Recording business transactions in a journal.
3.Posting business transactions from the journal to the general ledger and determining individual account balances.
4.Preparing a trial balance.
5.Recording adjusting entries in a journal.
6.Posting adjusting journal entries to the general ledger.
7.Preparing financial statements from adjusted trial balances.
8.Recording closing entries in a journal.
9.Preparing a post closing trial balance.