NOTES:

What are the key steps of the accounting cycle?

1. Analyze source documents

2. Record transactions in Journals

3. Transfer to Ledger – specific categories

4. Trial Balance – summary of financial data

5. Prepare financial statements

6. Analyzing financial statements

Which ones are typically done by bookkeepers and which ones are done by accountants?

Bookkeepers

1. Analyze source documents – bookkeepers must go through all the different

transactions and classify and organize them.

2. Record transactions in Journals

3. Transfer to Ledger

4. Trial Balance – summary of financial data

Accountants

1. Prepare financial statements

2. Analyzing financial statements