Introduction

The accounting cycle is a sequence of steps followed in the accounting system of any business. Bookkeepers must analyze source documents such as: invoices, sales receipts, purchase order, or validated deposit slips. In accounting, a double-entry system is considered its backbone, which means that all events or transactions have dual effect that balance or offset each other. In a double-entry system, two (2) or more accounts are affected in any given transaction, and will be recorded with at least one or more debits and one or more credits. The total of the debits must equal the total of the credits.

The first step in the accounting cycle is journalizing the transactions in the journal. The journal is a book of original entry or a chronological record of all daily transactions. Manual accounting follows a specific manner of recording transactions in the journal. Debit account names must be recorded first as close to the date margin as possible and the dollar amount is entered under the debit column. The credit account names must be indented from the date margin and the credit amount is entered under the credit column. And to complete the journal entry, a brief explanation is required underneath the credit account names. QuickBooks Pro does not distinguish whether the debit accounts were entered before the credit accounts. As long as the transaction is in balance, QuickBooks Pro will allow you to post or save them. Both in manual and computerized accounting the transaction date is of vital importance.