accounting closing

Review general ledger for any unusual transactions or errors

Verify that all accounting entries have been recorded accurately

Reconcile bank statements and resolve any discrepancies

Ensure all revenue and expense accounts have been properly classified

Confirm that all necessary adjusting entries have been made

Review and update the depreciation schedule for fixed assets

Close revenue accounts by transferring balances to the income summary account

Close expense accounts by transferring balances to the income summary account

Close income summary account by transferring its balance to the retained earnings account

Close dividends account by transferring its balance to the retained earnings account

Verify that the retained earnings balance matches the statement of retained earnings

Close temporary accounts (revenue, expense, income summary, and dividends) to zero balances

Prepare the income statement using the balances from the final trial balance

Prepare the statement of retained earnings using the balances from the final trial balance

Prepare the balance sheet using the balances from the final trial balance

Prepare the statement of cash flows using the cash flow information from the period

Prepare any additional financial statements required by the company or regulatory bodies

Review and analyze the financial statements for accuracy

Prepare and distribute the financial statements to stakeholders

File necessary tax returns and comply with other regulatory requirements

Update and maintain accounting records for the next accounting period

Archive and store all financial documents and records in accordance with legal requirements

Document any significant issues or discrepancies encountered during the closing process

Prepare a summary report highlighting the closing process and outcomes for future reference