As a business owner, keeping track of your finances is essential. One of the most important aspects of financial management is bookkeeping. Bookkeeping is the process of recording all financial transactions that occur in your business. It is crucial because it allows you to keep track of your income and expenses, which helps you make informed decisions about your business. In this blog, we will take a closer look at the bookkeeping cycle, which is the process of recording, classifying, and summarizing financial transactions. What is the Bookkeeping Cycle? The bookkeeping cycle is a process that bookkeepers follow to ensure that all financial transactions are recorded accurately and completely. The cycle consists of several steps, each of which is crucial to maintaining accurate financial records. The bookkeeping cycle starts with the recording of financial transactions and ends with the preparation of financial statements. Let's take a closer look at each step. Step 1:
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