In this definition
What the close includes
The close uses a checklist, transaction cutoff, accruals, prepaid expenses, variance investigation and period locking. Reconciliations and a trial balance review help identify differences before reports are finalized.
The reporting handoff
The finished records support financial statements and management reporting. Keep the supporting schedules and unresolved items with the close package so reviewers can follow the balances.
Common questions
What Is a General Ledger in Accounting?
A comprehensive accounting record that contains all financial transactions for a business, organized by individual accounts. The general ledger serves as the central repository for all debit and credit entries, providing the foundation for financial statements and business reporting. Outsourced accounting services maintain accurate general ledgers to ensure proper financial record-keeping and compliance.
How Do You Reconcile a General Ledger?
General ledger reconciliation involves comparing subsidiary ledgers to general ledger control accounts to ensure accuracy. The process includes verifying that accounts payable subsidiary ledger totals match the AP control account, accounts receivable details align with the AR control account, and all journal entries post correctly.