Why understanding of basic accounting is crucial when learning MYOB & Xero?

To answer this question, we need to understand the accounting cycle and the process of manual accounting first. When you are doing accounting for a business manually, you need to go through the entire accounting cycle in a step-by-step process to prepare the business financial statements.

What is accounting cycle?

Accounting cycle is a series of account-relataccounting-cycleed processes which shows how accounting transactions of a business is recorded in its book.

The diagram below shows the process of an accounting cycle in a step-by-step process.

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