Posting Data into the Accounting System

Posting data into the accounting system

According to Kieso, Weygandt, and Warfield, (2010),” A company records in accounts those transactions and events that affect its assets, liabilities, and equities,” (Accounting Cycle).Once the information is approved it is entered into the accounting system by the a/r and a/p clerks. This information makes it way to the ledgers at the end of the month.

Trial Balance

According to Kieso, Weygandt, and Warfield, (2010),” A company usually prepares a trial balance at the end of an accounting period,” (Accounting Cycle). The accountant creates the trial balance for review by the owner and makes any adjusting entries to the ledgers. An adjusted trial balance is then created. Most of the time this step is not needed as there are no adjusting entries made.

Financial Statements

Once the owner approves the adjusted trial balance then the financial statements are created by the accountant. She prepares the income statement, the profit and loss statement, and the balance sheet. The only time a Statement of retained earnings is prepared is when needed for investors. After all of this the accountant will still need to make the closing entries for the period. Most of this work is done in the accounting system used. It is mostly automated and simple. The accounting team in place works well together to get the information entered, processed, and posted in a timely fashion.

The accounting cycle for S&K Janitorial is rather simple. It is a small company and the need to produce certain financial statements is not necessary. For the most part the clerks handle the daily transactions and record them in the accounting system. The accountant then makes sure all entries are valid and correct and prepares the payments, financial statements, and payroll. All is approved by the owner before they are released.

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