The accounting cycle is critical because it helps to ensure accurate bookkeeping. Skipping steps in this eight-step process will likely lead to an accumulation of errors.

You cannot afford to miss a step in the accounting cycle because accounting processes and procedures are dependent on each other, and each prior activity is a prerequisite for the succeeding task.

The accounting cycle takes accountants through ten distinct steps, each of which depends on information generated in the previous step.

The accounting cycle tracks a transaction until it's added to your company's financial statement. Follow this eight-step process to organize the data.