The nine steps of the accounting are shown below. In step one the accountant has to determine which transactions engaged in by the company are to be journalized. Step two only those that affect assets and liabilities are entered into the journal. Step three consists of taking each journal entry and placing it in the appropriate ledger account which makes tracking the changes to each account much simpler. In step four the accountant prepares a trial balance to make sure that all transactions are properly recorded (if the trial does not balance then something is not recorded properly). In step five the accountant records information pertaining to the end of the of the cycle usually the end of the month such as adjusting the supplies account to show supplies actually on hand and any other transactions that have not previously been entered as well as recording expenses incurred but not being paid until a later date. Step six consists of preparing a trial balance of the adjustments made in the previous step to Step six consists of preparing a trial balance of the adjustments made in the previous step to ensure all are recorded properly and that they balance. Step seven consists of preparing the four financial statements these four documents simplify the compiled information into a more easily readable format for members of the company and its investors and or creditors. In step eight the accountant journalizes and posts the closing entries. This closes out the temporary accounts leaving them with a zero balance and ready for the next accounting cycle so that there can be a true and accurate measure of the revenue and expenses generated by the company during that cycle. In step nine to ensure the accuracy of the mathematics involved the accountant prepares a post closing balance to ensure all figures are proper and correct. If all is as it should be it will balance if not there is something incorrect and corrections are needed.