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Analyze Transactions
Analyze all transactions from the previous year -
Journalize
Record all transactions or transfers of assets -
Post
Post journal entries to the ledger -
Prepare unadjusted trial balance
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Adjust
Make adjustments as needed to accounts -
Prepare adjusted trial balance
With adjusted accounts, "re-do" the trial balace -
Prepare Financial Statements
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Close
Close all non-permantent accounts so they reset to zero for the upcoming year -
Prepare post closing trial balance
With temporary accounts now closed, prepare new trial balance -
Reverse (Optional)