The Accounting Cycle includes all of the documentation that is collected and all of the controls and systems in place to ensure accurate accounting. The Accounting Cycle begins with the point of sale, with documentation for the transaction (invoice or receipt) and the internal expenses and inventory.

There are conventions, controls and systems in place to account for and control the flow of information in a company at each stage of the process to ensure that accounts are as accurate as possible. The Accounting Cycle may refer to the length of time between trial balances, such as monthly, quarterly, or annually.

Most companies now have accounting software that automates the accounting cycle in ways that were not possible in the past. Each step in the cycle should be able to account for itself. Problems with the accounts must be able to be isolated to the step at which they originated.