The accounting cycle is a combination of processes that occur at various times during a designated time period. The time period can be weekly, monthly, quarterly, semi-annually or annually, depending on the needs of the organization or company for which the accounting cycle is performed. The cycle consists of ten steps. The steps are as follows: The first step refers to transaction analysis. The second step is to write a diary. The third step is publication. Step four involves preparing an unadjusted trial balance. The fifth step is adaptation. The sixth step is to prepare an adjusted trial balance. The seventh step is the preparation of the financial statement. Step eight is to close. Step nine is to prepare a post-closing trial balance, while step ten is to reverse. This paper will further discuss the accounting cycle, the effects of omissions, and end with an overview of financial statements. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The accounting cycle was originally designed for accountants who did not have access to the computer software we use today. Many of the accounting software programs available allow users to complete a series of steps in the accounting cycle in a single step or to perform the steps in a somewhat out-of-order manner. The basis on which these measures were designed, however, has not changed. This is the main reason why financial professionals and students who focus their studies on all things business still learn about the accounting cycle. Analyzing transactions means that a business must save all purchasing documents, checks, receipts, and any other documents that indicate a financial transaction. To journal transactions, you must determine which accounts will be affected by the transaction and correctly record the transaction to reflect those accounts. The accountant must use the double-entry accounting method to record transactions. The purpose of preparing various trial balances is to verify the accuracy of the results with the figures entered. There are various checks and balances in accounting to ensure reporting accuracy. The purpose of correcting and reversing entries is to properly balance all the numbers and figures to ensure transparency of a company's financial data. If an individual skips a step or leaves a step inadvertently, the data may not be accurate or may be missing key components. To have more accurate balance sheets and more transparent financial data, it is not necessary to omit some steps. Omitting steps can potentially lead to inaccuracies and quantitative discrepancies that could eventually lead to poor performance standards, a failed audit, or even litigation. All stakeholders of a company review a company's financial statements to evaluate the health of a company. If a step or accounting figure is not reported accurately, stakeholders, such as management, customers or owners, may not make the best decisions for the business. Some of the major financial statements that come out of the accounting cycle are the balance sheet, cash flow statement, income statement, and statement of stockholders' equity. These statements are all important as they serve different purposes for the company. They show money coming in and out to evaluate profits, sales, expenses, and other factors a business can choose to change to become.