What are the activities in the accounting process?

The accounting process or accounting cycle consists of activities that are performed in three phases. Each phase is performed over certain time periods.

Phase 1

The activities in the first phase are performed daily:

1. Analyze transactions that occur
2. Enter transactions into the journal
3. Post the journal entries to the ledger accounts

Phase 2

The activities in the second phase are performed periodically depending on how a company's accounting department is structured. They may be performed weekly, monthly, quarterly, or annually:

1. Prepare trial balances
2. Enter adjusting entries into the journal and post to ledger accounts
3. Prepare an adjusted trial balance

Phase 3

These activities are performed by the company annually at the end of a fiscal year:

1. Prepare financial statements
2. Make closing entries in the journal and post to ledger accounts
3. Prepare a post-closing trial balance