This article talks about the procedures that are to taken before the preparation of the financial statement.
Accounting process refers to the chronological procedures carried out by an accountant during a trading period. This means accounting process is the steps taken by an accountant during a trading period before the preparation of the final accounts i.e identification of financial transactions, analyzing and classification of financial transactions.These process are carried out repeatedly every trading period by the accountant so as to give an accurate and most especially an understandable financial statements to the users of accounting information i.e Government, Customers, Companies e.t.c
At the end of every financial trading period there is a need for financial statements so as to show the financial position or status of the business. In order for the accountant to provide the financial statement it is assumed that he must have been performing some tasks prior to the end of that trading period i.e recording, analyzing e.t.c, the whole tasks from the aspect of identifying transactions to the aspect of reversing accrual entries is refereed to accounting process.