The accounting cycleThe accounting cycle includes the following ten steps:1. Analyze and classify events.2. Log the event.3. Publication in the general ledger.4. Take an unadjusted trial balance.5. Make adjustment entries.6. Take an adjusted trial balance.7. Prepare financial statements.8. Complete the closing entries and post them to the general ledger.9. Take a post-closing trial balance.10. If necessary, reverse the entries and post them to the general ledger. This document will discuss these steps in detail. Because I work from home, I am not currently involved in any stages of the accounting cycle. The examples I give in this article are from various jobs I've had in the past. The first step is to analyze and classify the events. In order to capture transactions, the recorder must first decide what should be recorded. An event should be recorded “if it is measurable, relevant and reliable” (Kieso, Weygant and Warfield, 2004). Although some events increase the company's assets, not all of them can be recorded. For example, hiring a highly skilled employee may be considered the acquisition of an asset, but there is no way to measure that asset and so it is not recorded. In my experience, it's usually management that makes these decisions. The source documents are compiled and submitted to the accounting department. The second step is to enter the transactions for the period into the appropriate journals. This step involves taking the journal entries, assigning each to one or more asset, liability, equity, expense, or revenue accounts to be debited and credited. It can be done by almost anyone. I've had jobs where the accountant made the journal entries and determined which accounts were affected. I've also had jobs where anyone from a receptionist to an accountant performed this step. If the person making the journal entries does not have accounting experience or does not know which accounts are involved, the person submitting the source documents will note which accounts should be debited and which should be credited. This practice makes journal entries little more than data entry, which can be done by almost any employee. The third step, posting to the general ledger, is usually carried out either by an accountant or under the supervision of an accountant. Before posting, the journal entries are reviewed by an accountant for accuracy, then for each batch, the person who entered them is either given corrections to make or asked to post them..