Accounting is an information system that seeks to identify, record, and communicate financial information about a business. The accounting cycle is the process of recording, classifying, and summarizing the transactions of a business. It is a continuous process with eight steps involved: (1) Analyzing transactions; (2) Journalizing; (3) Posting; (4) Trial Balance; (5) Adjustments; (6) Adjusted trial balance; (7) Financial statements; and (8) Closing entries. By understanding and following this cycle, businesses can ensure accurate financial records are kept and also make better operational decisions based on their financial performance.