Report Financial for Beginners, here’s how to make it

make report financial in the correct order or flow, you only need to journalize transactions, post them to the general ledger, create a trial balance, and compile other financial reports.

Very easy right? Yes, for those of you who understand accounting, it will certainly be easy. However, if you still don’t know accounting, maybe this will be a difficulty.

The following is a sequence or flow in how to prepare financial reports:

1. Make a report by collecting and recording financial transactions in a journal

The first step in making a summary of financial statements is to record the transactions made by the company in the current year in the journal. Transactions are common activities that are often carried out by companies, whether buying, selling, exchanging goods, renting or other transactions.

2. Make and post journals to ledgers to make report

After making a journal, the second step is posting the journal to the ledger. The general ledger is a breakdown of each of the existing accounts.

3. Create and prepare a Trial Balance to make a report

The next way to prepare financial reports after creating a ledger is to prepare a trial balance. A trial balance is a list of general ledger accounts with debit and credit balances.
The list of accounts in the general ledger is grouped into liabilities or asset groups.

4. Collect Data for Adjusting Journals on financial report

There may be some transactions that have not been recorded or transactions that occurred at the end of the financial reporting stage and some are still not in accordance with the conditions at the end of the period, so the data is collected to make adjusting entries.

5. Create and Compile Balance Sheets for report

To facilitate the preparation of financial reports, we need to prepare a work sheet or worksheet starting from the data in the trial balance and adjusting it to the data obtained from the adjusting journal.

6. Make Financial Reports

The way to make simple financial reports in accordance with the flow and the next sequence is the report that has been made on the work sheet, all you have to do is write it neatly according to the provisions or financial reporting standards.

7. Make a Closing Journal

After the accounts in the ledger have adjusted, now is the time for you to make closing entries. To make it necessary, the documents used as the basis for preparing closing journals are reports of nominal/temporary accounts to the profit and loss account and transferring the profit and loss balance to the profit and loss account is not shared.

8. Make Trial Balance After Closing

To check the balance of debit and credit balances for accounts that are still open, you must make a trial balance after closing which contains real accounts, not nominal ones that have been closed. So the accounts included in the trial balance are real or real accounts.
The previous accounts do not need to be entered into the trial balance after closing because the previous balances have been zeroed out with the help of closing journals.