ACCOUNTING

Closing Entry in Accounting Cycle

AccountingCycleAs a bookkeeper, you complete your work by completing the tasks of the accounting cycle. It’s called a cycle because the accounting workflow is circular: entering transactions, manipulating the transactions through the accounting cycle, closing the books at the end of the accounting period, and then starting the entire cycle again for the next accounting period. Continue reading “Closing Entry in Accounting Cycle”

ACCOUNTING

5 Steps in preparing Accounting Worksheet

worksheet3Small-business owners understand that the creation of an accounting worksheet ensures the tasks involved in developing the company’s financial statements become much easier. Worksheets also help accountants make sure the data in those statements is accurate and up to date. Each section of the worksheets must be divided into debit and credit columns. The totals of the debit and credit columns in each section must be equal to verify the accuracy of the record-keeping process.

1. Accounts And Trial Balance

The left column of the worksheet contains the list of accounts the company tracks for its records. The accounts are listed on the worksheet in a specific order: assets, liabilities, equity, revenue and expenses. As the accountant lists each item in the worksheet, he will also include its “trial balance.” Continue reading “5 Steps in preparing Accounting Worksheet”