Accounting Cycle
Essay Preview: Accounting Cycle
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The accounting cycle is a logical sequence of procedures used by businesses to record transactions and prepare financial statements. The cycle begins with a transaction and ends with the closing of the books and is repeated each reporting period.
There are several steps of the accounting cycle that are completed throughout the reporting period as a transaction occurs. First you identify the transaction or other event. Next you journalize the transaction and then post to the ledger. Other steps of the cycle are only performed at the end of the reporting period. First you prepare a trial balance to make sure that debits equal credits. Next you prepare adjusting entries, post them to the ledger accounts and prepare the adjusted trial balance. Once this has been done you can then prepare the financial statements. The step is followed by preparing closing journal entries, preparing an after-closing trial balance and then preparing the reversing journal entries.
In my organization, Xanterra Parks & Resorts, we have an accounting department that takes care of all accounting reporting and handles most transactions. Each of the nine locations and hotels within the park also have a controller and auditors who are responsible for the accounting matters and money transactions at their location. This information is then transferred through daily and weekly reports to the main accounting office at the park headquarters.
In my position with the reservations department I do not have much experience or interactions with the accounting department. When a check is sent to my office I deliver it to the accounts receivable clerk in the accounting office. The check is then posted to the appropriate contract. Then, about once a week, I receive a report showing all the checks that have posted to my various contracts.
Unfortunately, because I am not part of the Accounting department, I am not able to clearly