What is Financial Close?
The bookkeeping term Financial close represents the process of reducing the stability in affordable records, such as earnings and expenses, to zero
The near is part of the bookkeeping pattern, and is necessary to prepare these short-term is the reason for the next period’s dealings and events. A Financial close is typically performed once the organization has prepared fiscal reports for the current bookkeeping interval. Prior to the near, the information included in these records is first moved to an Earnings Conclusion, which keeps this data for each bookkeeping interval. Once moved, the income and cost records are shut through a set of records published to their general balance sheet. The Earnings Conclusion account is consequently shut through a transfer to owner’s value. Once the Financial close is complete, post-closing test stability is performed to ensure that all debits and attributes have been published to the Earnings Conclusion.