What are the 5 stages of bookkeeping?

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What are the 5 stages of bookkeeping?
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• If you summarize the process of bookkeeping, then
  it can be broken into five steps. When you hire a
  company for Bookkeeping in Adelaide, you should
  ensure that these steps are followed.
• Collection and analysis of transactions
• Journalizing of entries
• Posting of entries into the ledger
• Checking for errors and trial balance
• Reporting period

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1 Collection and analysis of transactions

• This is the first step of accounting. An
  expert Bookkeeper in Adelaide will analyze
  transactions to understand the financial position
  of the company. Some examples of these
  transactions are
• Revenue earned
• Cash payments from customers
• Asset purchases
• Expenses
• Borrowing
• Accounts receivable
• Writing-off Bad debts
• Dividends declared
• Necessary receipts

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2 Journalizing of entries

• In the old days, the process of journalizing
  entries was done by hand. In todays time, mostly
  computers are being used for journalizing
  entries. One good example of an accounting cycle
  is the POS or Point Of Sales system. They can
  quickly and efficiently journal entries entered
  into the accounting journal.
• The details recorded in the system are the date,
  amount, and location for future reference.

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3 Posting of entries into the ledger

• As mentioned earlier, journal entries are done in
  the order they happen. It is called chronological
  order. But in the general ledger, they are
  entered account-wise. Account means how the
  business buckets transactions, for example, goods
  sold, investments, tax paid, etc.
• By looking at the general ledger, anyone can know
  about the current balance of the company. It is
  also the fastest way to search for any
  transaction through the accounts listed in the
  ledger.

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4  Checking for errors and trial balance

• This step occurs at the end of the accounting
  period. Here, you create an unadjusted trial
  balance. It is done by balancing debits and
  credits at a single place, e.g., a table. It
  follows the philosophy of the double-entry
  system. The sum of all credits and debits should
  be balanced. If not, then there is an error in
  the entries.
• In case any errors are found, then a
  reconciliation is required. The entire process of
  finding errors, correcting errors, and closing
  temporary adjusting accounts will be done at the
  end of the trial balance period.

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5 Reporting period

• The final step in the accounting cycle is the
  reporting period. It encompasses the preparation
  and publishing of financial reports for the
  period. Transactions are reported once the
  accounting period is closed.
• Some mandatory reports are
• The income statement
• The balance sheet
• The statement of changes in the financial position

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