Importance of Accounting Cycle
Here we discuss about the Importance of Accounting Cycle. If you want to know better understand this topic, then kindly read my article about “ Steps in the Accounting Cycle ". Through this Cycle, true and fair of financial statements can be presented to the Users of Financial Statements (Investors, Banks, customers, Financial Institutions, Creditors, Suppliers and so on). 4 main Importance ü Company Businesses can easily check their performance through Income Statement or Statement of Comprehensive Income, Balance Sheet, Statement of Cash Flows and Statement of Changes in Equity. Ultimately, the weaknesses of company businesses can be lowered in this regard. ü It prevents the company businesses from Errors and Frauds. For Instance, If any of the step will fail, then errors and frauds can be detected after conducting audit by Char