How do you perform month-end closing activities?

Question

Accepted Answer

Month-end closing activities ensure accurate financial reporting and compliance with accounting standards.

Reconcile accounts: Ensure all transactions are recorded accurately by comparing ledger balances with bank statements.
Accruals and deferrals: Record any expenses incurred but not yet paid, and revenues earned but not yet received.
Review journal entries: Verify all journal entries for accuracy and completeness before finalizing the accounts.
Generate financial statements: Prepare income statements, balance sheets, and cash flow statements for review.
Conduct variance analysis: Compare actual results to budgeted figures to identify discrepancies and investigate causes.

Accepted Answer

We close the books of accounts by taking relevant provisions, etc

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