How to Make an Accounting Process Flowchart

Even the slightest deviations to your standard accounting process can corrupt your financial statements. Record this fixed cycle by preparing an accounting process flowchart. This flowchart reminds accounting employees of the essential steps in the series and helps ensure their conformance to this necessary procedure.

Instructions

Difficulty: Moderately Challenging

1. Brainstorm the necessary steps in the company's financial accounting process. Divide these steps into three categories including Daily Processes, Period-End Processes and Financial Reporting Processes. Open a new document using graphics presentation software. Save the document as "Financial Accounting Process."
2. Type the three category titles beneath the chart's title. Space the titles to create columns sufficiently wide to include text. Decide whether the title should be in fields or text boxes. Insert enough fields or text boxes for each step in the entire accounting process.
3. Begin with Daily Processes. Insert a beginning field for "Source Document" and an ending field for "Journal Entry." Add fields in between for "Posting Source Document," "Journals and Ledgers" and "Preparation of Journal Entries."
4. Draw an arrow from the last field in the Daily Processes category to the first box in Period End Processes. Insert the first field, "Journal Voucher File" and ending field, "General Ledger." Add one field in the middle for "Post Journal Voucher File."
5. Move to the Financial Reporting Processes category. Create a field for "Obtain Account Balances for Worksheet." Extend an arrow from the "General Ledger" field to this one. Follow with these fields, "Worksheet," "Prepare Trial Balance," "Trial Balance," "Analyze Account Balances," "Prepare Adjusting Entries and Adjusted Trial Balance," "Adjustable Trial Bar" and "Prepare Financial Statements."
6. Finish the chart with "Prepare Closing Entries and Post to General Ledger."