Accounting Cycle

is the sequence of steps in preparing the financial statements for a given period. The procedures needed to process transactions through an accounting system; including journalization, posting, adjusting, and preparing financial statements

The accounting cycle is the sequence of steps to record transactions and prepare financial statements: journal entries, posting to ledger, adjustments, trial balance, and financial statement preparation.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **Accounting Cycle** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.