You've just created and e-mailed the financial statements to your boss? What is the next step you should do in accounting cycle?

Perform a trial balance to check the statements

Creating a balance sheet

Close out the revenue and expense accounts

Adjusting entries for the next cycle

You've just created and e-mailed the financial statements to your boss. What is the next step you should do in accounting cycle? Close out the revenue and expense accounts. After the financial statements are prepared all nominal accounts which include the revenue and expenses, should be closed out to zero. This allows for the accounts to be at an even start for the next accounting cycle.