By having an accounting cycle report, you can find out your company’s financial flow. Both the trading company accounting cycle, the service company accounting cycle, until the manufacturing company accounting cycle. This is what makes the accounting cycle report needs to be done by the owner of the company or a business person. Decision making on business or company performance also becomes more appropriate by looking at the accounting cycle report. Therefore, so that the company or business that you manage can develop better, don’t hesitate to compile an accounting cycle report using Bookkeepers Silverwater.
The making of this journal relates to the closure of information of all accounts with the profit, loss, and capital changes report. The purpose of keeping a closing journal is to avoid the risk of recalculation of the accounting cycle in the next period. That way, the closing journal ends the account of changes in capital, income, and expenses. The purpose of making this closing trial balance is for account information to be balanced. That way, accounting activities in the next cycle can be started without any mistakes that might be fatal. The preparation of the closing trial balance is done by noting accounts that still have a post-closing balance value, composing a closing journal.
The making and accounting stage of the reversing journal in the general ledger is the last stage in preparing the accounting cycle report and is generally done when starting a new accounting cycle period. You can also decide not to prepare a reversing journal if it is deemed unnecessary in the accounting cycle report for a certain period. The purpose of creating a reversing journal is to simplify the way the transaction is recorded. Usually, a reversing journal needs to be made if there are repetitive transaction records for the next accounting period. This is what causes the creation and accounting of reversing journals to be optional.
Financial statement records contain additional information that is more detailed than a particular account. The purpose of these financial statement records is to make the comprehensive value of financial statements of a business or company easier to understand. So, if there are things that are not easy to understand, you can explain the financial statement notes.