How Do You Complete The Accounting Cycle?
Accounting cycles occur on an annual basis and a quarterly or monthly basis. The term “cycle” simply means a period of time over which financial data is gathered and reported. The lengths of the cycles are determined by common practice. Before accounting data from the annual, quarterly or monthly cycle can be reported to company owners, shareholders and executives, certain steps need to be followed to ensure that all data is recorded and accurate. While accounting software and systems vary somewhat from one company to the next, the basic concepts and processes are basically the same. Closing accounting cycles is also essentially the same for non-profit organizations as for for-profit companies. Read on to learn how to complete the accounting cycle. At the end of the accounting cycle, make certain that all data has been posted to your various accounting modules, including accounts payable and accounts receivable. Gather all schedules of depreciation or other amortized expenses–workers
