Data processing cycle

The data processing cycle is the set of operations used to transform data into useful information. The intent of this processing is to create actionable information that can be used to enhance a business. This cycle involves the following steps:

  1. Collection of data

  2. Preparation of the data into a format suitable for data entry, as well as error checking

  3. Entry of the data into the system, which may involve manual data entry, scanning, machine encoding, and so forth

  4. Processing of the data with computer programs

  5. Transmitting the resulting information to the user, typically via screen or printed report, so that it can be acted upon

  6. Storing the input data and output information for future use

Related Courses

Accounting Information Systems