The Accounting Cycle: Understanding Month-End Close

The Accounting Cycle: Understanding Month-End Close
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Month-end close is an essential process in the accounting cycle. It occurs after all transactions and activities of the month have been recorded. It is when the business books are closed and the financial statements, such as the balance sheet and income statement, are prepared and finalized. During this process, my friend and their department will perform several activities, including reconciling bank accounts, summarizing financial activities, and adjusting the accounts to ensure accuracy. The first activity my friend and their department may do is reconcile the bank accounts. This involves checking the account balances in the general ledger with bank statements to identify discrepancies and make necessary adj...