The Accounting Information Cycle

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.