Closing Your Books

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There are two types of closings:

Periodic Closing consists of running reports and updating account balances. This keeps your accounts up-to-date and allows you to assess the financial health of your business. Most companies close monthly; others might close quarterly or even weekly. Close your books at the intervals that your accountant recommends.
Annual Closing consists of determining year-end profits or losses. This is a finalization of the year for submitting accurate financial information for tax reporting.