What are the stages of the accounting cycle step by step ?

The accounting cycle is one of the most important financial accounting sciences that has emerged at the present time as a result of the rapid development of financial information and financial performance technology, which is through measuring the performance of the financial institution and economic entities on various financial sectors, as it gives a clear and accurate picture of businessmen and workers in the field of entrepreneurship So that they can make correct financial and investment decisions based on modern and sophisticated financial thinking with the requirements of the times, as it depends on a complete accounting cycle for all events that these entities go through.

When is the accounting cycle prepared?

The full accounting cycle is considered when a group of economic and financial events arose during a certain period of time as a result of the transactions of the economic entity in the entrepreneurship market with its competitors, partners, or friendly financial organizations. It was necessary to have a framework governing these financial transactions through a system prepared in advance by those in charge of the entity to measure performance in the entrepreneurship market and to show credible, clear and accurate results for all parties

Definition of the accounting cycle 

It is a complete accounting cycle for all financial events that occur during a period of time for the financial institution by means of inputs to the financial information and the operation of these inputs to obtain reports that measure the performance of the establishment and help to understand the financial position of the facility in the market by its partners or friendly organizations in the field of entrepreneurship. This course is prepared by qualified and specialized persons in that work ?..

What is the accounting cycle?

It is the cycle of the occurrence of financial information on the date of its occurrence, and then carrying out the process of operating and analyzing this information during a certain period of time by the employees of the facility to show the financial reports for the purpose of benefiting from them during a certain period of time in the near and distant future within the framework of the previously existing full accounting cycle .
 

The stages of the accounting cycle step by step

The stages of the accounting cycle depend on a set of tools and methods in accordance with very accurate accounting and financial standards.

1-The occurrence of the financial information at the specified time for its occurrence on a specific date

2- Determine the nature of the financial information when it occurs previously, for easy guidance after conducting appropriate operations for it by specialists for that

3-To compile these financial and classified information, analysis and registration after conducting appropriate operations to them by specialists afterwards

4-Here comes the final stage in the full accounting cycle which is how to connect this financial information through modern and sophisticated

The accounting cycle depends on a set of very important steps

1- methods to show in the form of financial reports to benefit from them afterwards Steps of the accounting cycle The emergence of a group of irregular and unordered financial events.

2- Arranging and organizing these financial events according to the order of their occurrence from the most recent to the oldest, or according to the emergence of this information on its own date


3- Preparing documents related to this financial information that occurred during a specific period of time from the date of the entity’s creation


4- Recording this financial information in the books of the establishment or the economic entity with specifying the nature of each information, whether debtor, creditor, expense or revenue, and confirming it in the book appropriate to it


5- Deporting these economic events to the establishment to that occurred during a specific period of time in each book for each event separately, separate from the other with the date of its occurrence


6- Preparing reports with a total of this financial information and the events that occurred during the period of establishing the economic entity to ensure their compatibility with the entity’s books or programs under the so-called audit balance


7- Doing some adjustments and accounting treatments in the accounting cycle as a result of errors of posting or recording and showing information and events in what is called a final balance of review


8-During a certain period of time for the economic entity, usually a fiscal year, information about financial activity is collected during this period to see if the establishment can continue again and determine the profit and loss for this economic entity


9-. Show the result of adjustments in and CLOSING REPORT financial reports such as budget and cash flows and income and shareholders' equity to benefit from them in the future to show the establishment of financial strength in the entrepreneurial market.

Example of the full accounting cycle .

An example of the complete accounting cycle In the accounting cycle, a very important and vital role that must be clarified, this is the feedback. It is the final stage of preparing financial reports by specialists in that, or the financial departments working in the economic entity. Some discussions of these reports resulting from the accounting cycle for capital owners to report the strength and weakness of the economic entity to clarify some of the measures that will be taken in the future to improve the performance of the accounting cycle and the financial activity in general At the end the accounting cycle, its stages, its definition, and its steps, you hope that the vision will be fully clarified about the accounting cycle with accuracy and clarity so that we can perform the accounting treatments in a correct manner, whether manually or through ready-made accounts programs that greatly help in preparing the accounting cycle with facility. And easy going