Month-end close

This involves recording all transactions and reconciling bank, credit card, and loan accounts. Adjusting entries are recorded for items such as depreciation, prepaid expenses, and accrued expenses. After the balances are reviewed, the profit and loss statement and balance sheet are produced and the period is locked.

The bookkeeper often performs this work while a controller or CPA reviews it. A faster close means reports arrive while still useful for decisions. A slow close means reports arrive after the decisions they could have informed.

These finalized numbers serve as the starting point for later reports, forecasts, and loan files.