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Accounting Articles > General Accounting:
Accounting revenue cycle strengths and weaknesses
Although some might consider this a new concept, it isn’t. Accounting is a portrait of your business’ health, and an insight into your future. It is the basic economic prediction tool which has existed and been refined over the centuries.
Most businesses have a seasonal aspect to their revenues and expenses. I haven’t seen many over the years that do not. If your a retailer, you wait for Christmas. If your a bankruptcy attorney, you long for a recession. Tax accountants love tax season.
If your accounting has been done correctly, the historical numbers of a company should show the strengths and weaknesses of the revenue cycle. This also means that there cannot be a major accounting change in between periods. If the accounting basis for the company changed from cash to accrual, the revenue cycles will not match up.
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