The Accounting Cycle is the holistic process used to record and track financial transactions in a business. It begins with the preparation of source documents, such as invoices and checks, and continues through the steps of analyzing and recording transactions, adjusting journal entries, preparing financial statements, and closing the books. Completing the Accounting Cycle means that all these steps have been successfully executed, so that the company’s finances are accurate and up-to-date. It is critical for organizations of all sizes to complete their accounting cycles in order to keep their financial records organized and reliable.