This question is about staff accountant skills.

What are the steps in the accounting cycle?

By Zippia Team - Dec. 9, 2022

The eight steps in the accounting cycle are transactions, journal entries, posting, trial balance, worksheet, adjusting entries, financial statements, and closing the books. This is a cycle, so after closing the books, you start again at identifying transactions.

The first step is identifying transactions, where you find a transaction to work on. Then, you record this transaction as a journal entry and post this entry to the general ledger. After this, and at the end of an accounting period, you prepare an unadjusted trial balance.

With that trial balance, you can look for any imbalances, such as the credits and debits not matching. Then, you can make appropriate adjustments and fix any errors.

You may then create financial statements that are prepared using the correct balances. Finally, the revenue and expense accounts are closed, and you find a new transaction.

What are the steps in the accounting cycle?

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