Adjustment process is extremely critical in the process of preparing financial statements to reflect the true picture of a company's financial health at the end of a period of account. It is problematic for accountants to recognize all those adjustments that are needed, to estimate the amounts like depreciation or accrued expenses, and to make these entries on the appropriate time. To keep adjustments on time and accurate, firms should have effective internal controls, provide ongoing training to accounting personnel, and have sound accounting systems that notify them of required adjustments. Failure to finalize the accounting cycle as an entirety exposes the business to the rendering of inaccurate financial statements, which can annihilate decision-making, annihilate investor confidence, and result in regulatory problems. Adherence to accounting standards and regular auditing reduce such risks