The Bookkeeping Cycle Checklist:

1. Collect and Analyze all Transactions
   • Identify all relevant accounts
   • Gather all documentation
   • Review the chart of accounts
2. Record and Post all Transactions
   • Record the transactions (when they happen
   • Categorize the transactions
   • Post the summarized transactions to the general ledger
   • Reconcile all transactions
3. Prepare Unadjusted Trial Balances
   • Prepare trial balances before any adjusting entries are made
   • Verify that all debits and credits are in balance (debit = credit)
   • Review to check for any errors or omissions.
4. Prepare adjusting entries
   • Review financial records to ensure that only information for current period is included.
   • Determine adjustments to be made, such as depreciation and accrual entries
     • (generally, a CPA or accountant will provide this information).
   • Record and post the adjusting entries.
5. Prepare adjusted balance
   • Prepare the adjusted balance
   • Complete a final review for accuracy.
6. Prepare financial statements
   • Income statement
   • Balance sheet
   • Statement of equity
   • Statement of cash flow