You Are an Audit Senior with Gooch & Brown Cpa, Llp, a Local Accounting Firm Specializing in Audits of Information Systems and Financial Statements. Your1040Return.Com Engaged Your Firm to Perform Its Financial

Abstract:

Accounting is cycle of business measurement. To control things, first you should measure. On business you can only measure by using accounting sheets. To get those sheets, there is ways needs to be followed. And this way is the accounting circle. Accounting circle is roll over circle which rolls every year. Since in accounting actually accountants are doing same things every year with using that year’s information, because it is the only way to measure and control the company.

What is meant by completing the accounting cycle?

Every business, every company basically dealing with money, at the end of the day no matter what they do, the important part is did they make money or not. Companies have lots of expenses and also earning and in addition to these they owe to their government on tax wise. All expense, income and tax calculation is made by accounting staff and accounting cycle. All about is keeping records and books good so managers, potential investors, banks, government tax authorities could understand what that business is doing, how are they holding, is it worth for investment, or how much taxes should they pay to government. All these questions answers are lying down on the accounting circle.

Accounting circle starts with beginning of the money entrance. So the first step of the circle is getting the data from all transaction and events. In addition to get those data, they need to be classified. For that reason this information is needed to analyzed.

Second step is entering expense and income to the accounting book, which is entering general journal.

After entering journal, as a third step , accountant should post entries to the general ledger.

In fourth step, accountant needs to prepare a trial balance to keep track that everything is going on right way without waiting the year-end period. This will carry lots of information for manager who would like to see the near future.

At the fifth step, the entries need to be adjusted...