Accounting helps in keeping the complete and organized record of its financial transactions. The financial records in the books of account have reduced the human limitation of keeping everything in mind because every transaction is recorded and analyzed.

1. Advantages of Accounting
& Accounting Cycle

2. What isAccounting?
Accounting is the broad and organized way of recording financial
transactions that pertain to business. It is a process of summarizing and
evaluating transactions to report it to organizations and tax collection
bodies. It is a major function for every business which is handled in small
organizations by either accountant or bookkeeper and for big
organizations, a proper finance department maintains the accounting
procedures.
The basic accounting features can be easily handled by the bookkeeper
or a fresh accountant. However, for complex accounting functions, a
qualified accountant with some professional degree is required to
handle the matters.

3. Advantages of Accounting:
Some of the key advantages of accounting are as follows:

4. Acco
“unting
Act. Count. think

5. Valuation of the business:
Accounting helps in providing the true and fair picture of the
business. The balance sheet depicts the correct picture by
showing the values of assets and liabilities that can be used to
identify the net worth of thebusiness.

6. Complete and systematic record:
Accounting helps in keeping the
complete and organized record
of its financial transactions. The
financial records in the books of
account have reduced the
human limitation of keeping
everything in mind because
every transaction is recorded
and analyzed.

7. Compliance of Law:
Accounting helps in preparing and filing tax returns that
are maintained by every business for government bodies
like sales tax, income tax etc.

8. Determination of Sellingprice:
Accounting helps an
organization in taking
management decisions in
order to make investments
or determining cost or
selling price, etc.

9. Accounting cycle:
It is a process of recording and procession the
accounting events of anorganization.

10. Accounting Cycle Process
It starts with the occurrence of a
transaction and ends with its inclusion in
the financial statements. it also includes
additional accounting records like general
ledger and trial balance.
The accounting cycle is a systematic set of
rules to ensure the precision and
conformity of financial statements. Its
standard process helps in reducing the
mathematical errors in the accounting
process. The best accounting software
UK includes the accounting cycle. The
modules are defined in these software's to
enter the transaction like accounts
payable and receivable etc.

11. The accounting cycle has the following steps
i. The accounting cycle hasthe
following steps:
ii. Analyzing accounting transactions
on their occurrence
iii. Recording journal entries
iv. Posting debit and credit entries in
general ledger i.e. ledgeraccounts
v. Unadjusted trial balance
vi. Adjusting entries
vii. Adjusted trial balance
viii. Financial statement
ix. Closing entries
x. Post closing trial balance.

12. ORGANIZATIONS’ ACCOUNTING CYCLE
The organizations’ accounting cycle starts with analyzing and recording the
accounting transactions using the journal entries. The entries are then recorded in the
general ledger and then an unadjusted trial balance is maintained. The purpose of the
trial balance is to ensure all debits are equal to the credits in the financial records. At
the end of the accounting period, adjusting entries is made if required. The adjusting
entries are made for any sort of correction required for the passage of time.
After making adjusting entries, the adjusted trial balance is prepared which follows a
financial statement. The end of the accounting period, the temporary accounts are
closed using the closing entries like revenues and expenses. Finally, post- closing trial
balance is prepared to ensure that all debits and credits are matched.

13. The accounting cycle is started and finalized
within an accounting period.
Most of the companies are now using accounting software's that process the most
of the accounting steps simultaneously. These software's reduces the time and
work of an accountant. These software's minimize the steps of recording
transactions. The accuracy of these software's reduces the need of maintaining
sheets of unadjusted trial balance, adjusting entries and adjusted trial balance. The
adjusting entries are only required to be put into these software's which lead to the
financial statement straight. The additional adjustments can also be made then and
the revised report can be obtained immediately.

14. info@WeAccountax.co.uk
+44 20 3807 5353
Thank You !