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The collective process of recording and processing the accounting events of a company is known as accounting cycle, the term accounting cycle refers to the specific steps that are involved in completing the accounting process. The series of steps begin when a transaction occurs and end with its inclusion in the,the length of the accounting cycle varies from company to company. It may be monthly, quarterly, semiannually, or annually depending on when the financial statements of the company are published. Regardless of the timing of the accounting cycle, the processes involved remain the same as:
Collecting and analyzing the data from transactions and events of the business.
Recording transactions into the general journal and posting entries to general ledger.
Preparing an unadjusted trial balance and posting adjusting entries to prepare Adjusted TB
Closing the books for the period (Monthly/Quarterly or Annual).
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