Accounting cycle procedures involve the specific steps to record, classify, and summarize accounting data. These steps include journalizing transactions, posting to ledger accounts, preparing trial balances, and creating financial statements. They are mechanical processes used to prepare and maintain accounting records​.

Knowledge of accounting goes beyond these procedures. It involves understanding how to use accounting information for decision-making purposes, such as evaluating performance, forecasting future operations, and making complex business decisions. While computers automate many procedural tasks, accountants focus on more analytical activities like system design, decision support, auditing, and tax planning​​.