accounting process definition
Definition. A sequence of activities involving the recording of how cash is received and paid out in a company or organization. The accounting process in business is based on four accounting methods, which are: the accrual method, the consistency method, the prudence method and the going concern method.efinition. A sequence of activities involving the recording of how cash is received and paid out in a company or organization. The accounting process in business is based on four accounting methods, which are: the accrual method, the consistency method, the prudence method and the going concern method. (The Accounting Cycle). The accounting process is a series of activities that begins with a transaction and ends with the closing of the books. Because this process is repeated each reporting period, it is referred to as the accounting cycle and includes these major steps:Identify the transaction or other recognizable event.The Accounting Cycle). The accounting process is a series of activities that begins with a transaction and ends with the closing of the books. Because this process is repeated each reporting period, it is referred to as the accounting cycle and includes these major steps: DEFINITION of 'Accounting Cycle'. The name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements.The nine steps of the accounting cycle are: 1  Collecting and analyzing data from transactions and events.he name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements. The nine steps of the accounting cycle are: The steps required for individual transactions in the accounting process are: 1  Identify the transaction. 2  First, determine what kind of transaction it may be. 3  Examples are buying goods from suppliers, selling products to customers, paying employees, and recording the receipt of cash from customers.4  Prepare document.he remaining steps in the accounting process are used to aggregate all of the information created in the preceding steps, and present it in the format of financial statements. The steps are: 1  Prepare trial balance. Accounting Cycle Defined. There is ebb and a flow to every industry. In accounting, the ebb and flow is the accounting cycle. The term accounting cycle refers to the specific steps that are involved in completing the accounting process.The cycle is like a circle.n accounting, the ebb and flow is the accounting cycle. The term accounting cycle refers to the specific steps that are involved in completing the accounting process. The cycle is like a circle. Period-End Processing. The remaining steps in the accounting process are used to aggregate all of the information created in the preceding steps, and present it in the format of financial statements. The steps are: 1  Prepare trial balance.2  The trial balance is a listing of the ending balances in every account.he remaining steps in the accounting process are used to aggregate all of the information created in the preceding steps, and present it in the format of financial statements. The steps are: 1  Prepare trial balance. Closing Process. The accounting closing process, also called closing the books, is the steps required to prepare accounts for financial statement preparation and the start of the next accounting period.he closing process consists of steps to transfer temporary account balances to permanent accounts and make the general ledger ready for the next accounting period. Accounting is the recording of financial transactions of a business or organization. It also includes the process of summarizing, analyzing and reporting these transactions in financial statements.EFINITION of 'Accounting'. The systematic and comprehensive recording of financial transactions pertaining to a business. DEFINITION of 'Accounting'. The systematic and comprehensive recording of financial transactions pertaining to a business.Accounting also refers to the process of summarizing, analyzing and reporting these transactions.EFINITION of 'Accounting'. The systematic and comprehensive recording of financial transactions pertaining to a business. The closing process consists of steps to transfer temporary account balances to permanent accounts and make the general ledger ready for the next accounting period.The closing process consists of three main steps: 1  Identify temporary accounts that need to be closed.he closing process consists of steps to transfer temporary account balances to permanent accounts and make the general ledger ready for the next accounting period.
A series of activities that begins with a transaction and ends with the closing of the books.