Tips and Advice for Year-End Closing
It is approaching the end of the year, and for many this means it is almost time to close the books. We’ve written an article with some advice on preparing for year-end closing. To read it, you must first answer three simple questions, then you can access the article.
Why is it important to close your fiscal year?
- The purpose of closing the fiscal year is to prepare the company, from an accounting perspective, to begin business in a new year.
- The resulting information provides a snapshot of the business’ performance for the prior year. This information helps to analyze historic performance and prepare a budget to help manage future performance.
- The financial reports affected are the income statement, balance sheet, statement of cash flow, and the statement of owner’s equity.
- The financial reports are utilized from various perspectives for different purposes: the internal accounting staff, senior management, a business banker, a C.P.A., and auditors.
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Joe
Marketing
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