What does the month-end close process involve?

The month-end close process is a crucial step in the accounting cycle that involves finalizing financial records at the end of an accounting period. This process typically includes several key activities such as reconciling accounts, reviewing financial statements, adjusting journal entries, and ensuring that all financial transactions have been properly recorded. By completing the month-end close, businesses can ensure that their financial reporting is accurate and reflective of their actual financial performance for that period.

Finalizing financial records allows for a comprehensive review of income, expenses, and overall financial health, which is vital for making informed business decisions. This process also leads to the preparation of the financial statements that stakeholders rely on to assess the company's performance.