Collecting financial statements involves a systematic process:
Source Documents: Gather all relevant source documents such as invoices, receipts, and bank statements. Accounting Records: Ensure all transactions are accurately recorded in the company's accounting system. Trial Balance: Compile a trial balance to verify that debits and credits are balanced. Adjusting Entries: Make necessary adjusting entries for accrued expenses, depreciation, and inventory adjustments. Financial Statement Preparation: Prepare the financial statements using the adjusted trial balance. Review and Audit: Conduct a thorough review and, if necessary, an audit to ensure accuracy and compliance.