Close-the-Books Process Flow

Closing the books refers to the steps required for financial statement preparation. It primarily covers the accounting activities surrounding the closing of the general ledger and all associated ledgers for each accounting period. When general ledger balances are inaccurate and journal entries are posted improperly, there is pervasive business risk involved due to the resulting misstated financial statements. This tool includes two sample process flows that can be used as a general guide to understanding, reviewing and mapping the close-the-books process. In these samples, the close-the-books process focuses heavily on the following activities: Journal entry preparation and posting General ledger account reconciliation Financial statement preparation and delivery