Closing the Books
In This Chapter
• Closing the ledger
• Assessing customer accounts
• Reviewing vendor accounts
• Opening new books
Year-end close is a time of accomplishment as you complete the functions for the previous year and start storing things away. It’s also a time of new beginnings as you start accounts for the new year.
Balance sheet accounts are never closed and their balances are carried forward from year to year, but you need to be sure the proper adjustments are made to place transactions in the correct year. Profit and loss (P&L) statement accounts are zeroed out. In this chapter, we look at the process for completing each of these tasks.
The period to close can take a couple of months as you complete all the ...