Closing the books is a systematic way of completing the accounting for a period of time. After the books are closed, financial statements and other reports can be distributed and used. Typically a company’s books are closed on a monthly basis though there may be additional activities conducted on a quarterly or annual frequency. Consistently closing the books each month allows you to:
- Be confident that your accounting is kept in order
- Produce accurate financial statements and other reports
- Access timely information you can use to make business decisions
While the accounting process can differ slightly from one business or non-profit organization to the next, the monthly closing process should be relatively consistent. This free guide outlines the 10 steps that will help you ensure consistent and accurate reporting, enabling you to financially manage your business.