The purpose of this month-end close policy is to provide guidance for the period-end close cycles required to prepare financial statements. This standard applies to both the month-end and year-end closing cycles for an organization. In this sample policy, the company’s accounting department should establish annual calendars for month-end and year-end closings and the preparation of financial statements.
This document can be used as a general guide to understand the month-end close policy. Organizations should continuously update and monitor the processes included in this document to ensure that it reflects business operations.