What is meant by interim closing?
The term "interim closing" refers to a preliminary closure of a specific accounting or reporting period conducted between regular financial statements. It serves to review financial and operational data, make adjustments, and assess the company's performance up to that point. The interim financial statement allows companies to gain early insights into their financial status and operational performance before the final closure for the complete period is prepared.
Typical software functions in the area of "interim closing":
- Interim Balancing: Preparation of a preliminary balance sheet to capture the company's financial position at a specific point in time.
- Income and Expense Analysis: Analysis of income and expenses up to the interim financial statement date to identify deviations and trends.
- Reporting: Generation of interim reports to present the financial status and operational performance to management.
- Adjustment Entries: Execution and documentation of adjustment entries to account for temporary discrepancies or corrections.
- Cost and Performance Accounting: Tracking and analyzing costs and performance up to the interim point to assess the efficiency of business activities.
- Forecasting: Creating forecasts based on data collected up to the interim financial statement to better estimate future developments.
- Data Integration: Integration of interim financial data into existing accounting and ERP systems for a consistent data basis.