Understanding Period-End Close Tasks

The specific process for closing an accounting period is unique to every company. Your organization should develop its own detailed closing tasks and include them in your internal documentation.

This list includes common tasks that most companies perform for an accounting period close:

• Enter period-end accruals.

• Review and post all batches.

• Run integrity reports and correct errors.

  Every company should include this task in their period-end closing process. Integrity reports supplement your internal balancing procedures and locate any data inconsistencies. You should run these reports before you close an accounting period as well as between closings so that you can correct problems in a timely and efficient manner. If you do not run integrity reports on a periodic basis, you risk compromising your accounting data.

• Reconcile general ledger and bank accounts.

• Close the accounting period for AP, AR, and GL.

• Run financial reports.

• Change the financial reporting period.