Key Steps of Bookkeeping

As a bookkeeper, you complete your work by completing the tasks of the accounting cycle. Here’s a look at the cycle, and the related bookkeeping steps:

1. Transactions: The purchases or sales of items start the process of bookkeeping.

   
   



2. Journal entries: Enter transactions into the books through journals.

   
   



3. Posting: Post journal entries to the General Ledger.

   
   



4. Trial balance: Test accounts in the General Ledger to see if they’re in balance.

   
   



5. Worksheet: Enter on a worksheet any account adjustments needed after the trial balance.

   
   



6. Adjusting journal entries: Post adjustments from the worksheet to affected accounts in the General Ledger.

   
   



7. Financial statements: Prepare the balance sheet and income statement using the corrected account balances.

   
   



8. Closing: Close the books for the revenue, expense and drawings accounts, and start the entire cycle again with zero balances in these accounts.

   
   

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Source:http://www.dummies.com/how-to/content/key-steps-of-bookkeeping.html