Accounting Cycle Steps in the Accounting Process

Hello, in this presentation, we’re going to be talking about the accounting cycle or the accounting process, that process that the accounting department will go through on a systematic basis over and over and over again, typically thought of as a monthly process. Although it could be thought of as a yearly process or some other process in terms of the amount of time that will pass. But these are going to be the steps that we’ll be going through in terms of the accounting process, always keeping in mind that in goal of financial accounting, which are the financial statements, some texts will have more steps than five as we have here. Some texts will have less than five steps. But the goal here is to really have a broad picture big picture, so that when we think about the accounting process, we can break down that that big picture view, five is a pretty good number for us to be able to memorize and keep in our mind if we have more than that, it can start to kind of muddy the picture.

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Cash Disbursements Internal Controls

In this presentation, we’re going to talk about Cash Disbursements, internal controls. Now we’re going to talk about a voucher system for the payment process. But before we get too into the voucher system, note that the systems will change depending on the type of organization and what industry we’re in and how large the organization is. So if we just have a small organization, then we probably just want to have some internal controls for the owner of the company, the owner, being a key component of the internal control system and having a lot more oversight over many of the things that happened. For example, for the payments that happen, we may have someone that requests something on an employee that wants to request a payment may even you know, enter the payment into this system. However, we want to make sure that the owner still has some control over such as the cheque signing.

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Cash Receipts Internal Controls

 

In this presentation, we will talk about cash receipts, internal controls. Now we’re going to talk about a voucher system for the payment process. But before we get too into the voucher system, note that the systems will change depending on the type of organization and what industry we’re in and how large the organization is. So if we just have a small organization, then we probably just want to have some internal controls for the owner of the company, the owner, being a key component of the internal control system and having a lot more oversight over many of the things that happen. For example, for the payments that happen, we may have someone that requests something on an employee that wants to request the payment may even you know, enter the payment into the system.

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Internal Controls

 

In this presentation we will introduce the topic of internal controls. Internal Controls been policies within an organization in order to achieve certain objectives those objectives including the safeguarding of assets, having reliable accounting records, efficient operations, and company policy alignment. We’ll get further into what each of these categories mean in detail. However, first we want to discuss the fact that internal controls will change from organization to organization and industry to industry will have similar objectives between organization to organization industry to industry, however, the customization of the internal controls will differ in order to have an optimal amount depending on size of company and type of industry. For example, a small company often one run by one individual will have very much fewer internal controls for multiple reasons. One that that individual can really monitor A lot more of the transactions for a small company and have direct contact with the transactions that are taking place.

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Special Journals Subsidiary Ledgers 2

In this presentation, we’re going to talk about special journals and subsidiary ledgers. First, we’re going to list out the special journals and talk about when we would use them, why we would use them and how they fit into the accounting system. The special journals are basically going to group types of transactions. So when we think about all the transactions that happened during the month, we typically see them in order of when they happen in the accounting system, we’re going to record transactions in other words, by date as they occur. But if we are able to group those transactions into special journals that can simplify the process.

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