Cycles do not just dictate the flow of seasons, the recycling process, or life itself. They are also an essential aspect of our society’s financial and economic structure. Companies are required to cyclically report their financial and accounting documents to governing bodies and the public, as a means to communicate and regulate business dealings.
A reporting cycle is the specified time when a business’s financial statements must be recorded and analyzed by internal and external entities to understand its current standing. The cycles are made up of different reporting periods, also known as accounting periods.