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The Steps Of The Accounting Cycle

The Steps Of The Accounting Cycle   by Mark Walters

in Accounting   (submitted 2009-12-31)

0

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The accounting cycle is used to analyze and summarize business transactions and events, and it helps businesses of all sizes ensure that their financial records are accurate, up-to-date, and in accordance with accepted accounting principles.
These are the steps that make up the accounting cycle...
1) Analysis
The first step is to analyze all transactions from the past year and to locate and file relevant documents for them.
2) General Journal
Next, transactions are recorded in a General Journal, so that there is a central record of all transactions.
3) Posting To The Ledger
Once a General Journal has been created, each transaction should then be posted to the ledger, which is a paper / electronic trail that is used to both verify accuracy and to refer to if balances do not tally later on.
4) The Unadjusted Trial Balance
The next step is to total up debit and credit balances to ensure that they are equal. Information from the ledger should also be compiled so that financial statements can be prepared.
5) Adjusting
Having recorded and verified external transactions (like utility payments and supply purchases), internal transactions (like unearned revenue and prepaid rent) must now be factored in.
6) The Adjusted Trial Balance
The preparation of the adjusted trial balance is the next task, which encompasses all internal and external transactions for the reporting period. Again, there accuracy is verified, by ensuring the credit and debit sums are equal.
7) Business Financial Statements
At this stage, a number of important financial statements are created. The Income Statement and Statement of Owner's Equity first, followed by the Balance Sheet.
8) Closing Of The Trial Balance
Temporary accounts are closed, while permanent carry their balances into the next period. Closing entries are recorded and posted to the business's capital account. Once that is done, all balances (revenue, expense, withdrawal, etc.) should be zero.
9) Post-Closing Trial Balance
Finally, comes the post-closing trial balance, which lists the balances of the accounts that were not closed (such as liabilities, assets, and owner's equity). This trial balance helps verify that permanent accounts balance (i.e. that they have equal debit and credit sums) and that all temporary accounts were properly closed.

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Accounting Outsourcing Services Enhance Your Business Profits

Accounting Outsourcing Services Enhance Your Business Profits   by Alvis Brazma

in Accounting   (submitted 2009-12-31)

0

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Do you think that your company is suffering a lot due to poor management of accounting department? Then it is high time that you start searching for alternatives that will assist you in the long run, one such alternate is accounting outsourcing services. In today's time many of the business houses are taking help of these services that have the capability to prepare all the financial projects in a systematic way pertaining to the interest of the company. For this switching on to enhanced mechanism for all your monetary associated tasks is essential but also take adequate steps in diminishing the company's expenditure also. As we all know accounting is the backbone of any business, so it has to be managed perfectly.



Finding accounting outsourcing services is not a difficult task at all as you can easily find out many providers who are willing to render their services. The outsourcing firms have highly professional and skilled accountants who are very well familiar with all the facets of accounting. Amongst the plethora of activities done by them including data entries on regular basis, making annual monetary reports and lots more. Furthermore, they also have complete knowledge about the latest software as well as technical tools that are launched so far in the market to carry out things in a better way. Hence by hiring accounting outsourcing services, the entrepreneurs get a chance to sit back and relax as they are assured that all the work will be done well within the time limit and the quality of the work will be intact too. So, in case if your company's accounting department is going through a hard phase then it is time that you make a sound decision of looking out for accounting outsourcing services.



Besides, this is not it as you can avail many more benefits also. In times when your company goes through major financial crisis then at that time the accounting professionals will render you with smart suggestions and advices in order to overcome major financial disorder. Many of the companies are looking forward to hire their valuable assistance. This type of alliance can be easily banked on with the notable convenience of online services.



For this search engine optimization is known to be the most craved way to raise your website's value in the market, amidst cut throat competition. In this procedure optimization of your website has to be done, which enhances your online business along with your search engine ranking also. With search engine marketing, several features are incorporated for establishing your site better along with enhancing the value of your web pages all over the world, in a manner that you might not have imagined earlier.



Nonetheless, prior to striking a deal with any accounting outsourcing services, it is advised to carry out a detailed research. For conducting this research internet is a good source. You will require browsing the World Wide Web and making a list of firms which befits your requirement in all possible ways.

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