You’ve completed the entire accounting cycle, from the very first transactions through journalizing, posting, and creating financial statements that report the results of operations and financial position to external users. You are now probably beginning to understand the importance of accurate accounting records and the process accountants go through to keep a business’s financial books aligned and current.

Along with the accounting cycle process, you’ve also gathered data that internal users can rely upon for budget reports, forecasts, and other managerial purposes. These statements and reports are the means for owners and managers involved in a business to see where a company’s finances are at any given point in time and make better choices for a company’s future financial health.

Next, we’ll start taking a look at each balance sheet account in more detail, in order of a normal trial balance, starting with the main checking account and other “cash” issues.