A company may set its competitive sights high to make money and make more of it over time, but it must listen to its accounting cycle to make sure personnel follow conditions top leadership has established. Failure to get employees’ buy-in with respect to regulatory compliance could have a detrimental effect on financial statements.
It is important to have a consistent understanding of the accounting cycle; how very important truly accurate record keeping is and the effect each step plays, and how very important truly accurate record keeping is., along with a consistent understanding to the success of the business.
Accounting has three basic activities; it identifies, records, and communicates the numbers to theinterested parties of the company. The internal users who depend on accounting information are the people who plan, organize, and run the business. The most common external users that depend on the accounting information are both creditors and investors. Neither of these groups would invest in a business with incorrect accounting information.
The accounting cycle consist of multiple steps that must be followed within a certain amount of time, ten in total. I have identified the steps of the accounting cycle to be journalizing transactions and posting to the accounts (Steps 1 through 3) and Adjusting the accounts, preparing the financial statements, and closing the accounts (Steps 4 through 10).
In step 1, you start with the beginning account balances. In step 2, you analyze and journalize transactions as they occur. In step 3, you post journal entries to the accounts. In step 4, you compute the unadjusted balance in each account, and prepare the unadjusted trial balance. In step 5, you enter the unadjusted trial balance on the worksheet, and complete the worksheet. In step 6, you journalize and post adjusting entries. In step 7, you prepare the adjusted trial balance. In step 8, you prepare the financial statements. In step 9, you journalize and post the closing entries. In step 10, you prepare the post-closing trial balance. As you can see, each step plays a vital role in the success of a business by providing a complete and stable foundation to building a solid financial statement.
As you comb through a company’s accounting cycle, you see the tools, strategies and (successful plans/ the business uses to record financial events, review them for accuracy of data, completeness and verifying regulatory conformity, which means taking the necessary steps to
appraise transactions, determining the correct accounting rule under the circumstances,
The last item means taking definitive steps to appraise a transaction, deciding how to record and report it and find the accounting rule that applies under the circumstances This approach is important because an investor or financial institution– such as a bank — doesn’t record produce a list of items the way a manufacturing firm does, for example.

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