The "monthly closing" refers to the periodic process where companies finalize their financial records at the end of each month to assess the financial position of the company for that period. During the month-end closing, various steps are taken to ensure the accuracy of accounting data and to prepare financial reports for the month. This includes reviewing and adjusting accounts, posting closing entries, generating financial statements, and preparing reports for internal and external stakeholders.
Typical functions of software in the "monthly closing" domain include:
Automated posting of closing entries: The software allows for the automatic posting of closing entries to adjust certain accounting accounts at the end of the month and finalize the month-end closing.
Account reconciliation: The software supports reconciliation of accounts to ensure that accounting data matches with external records and transactions.
Generation of financial reports: The software provides features to generate various financial reports such as the income statement, balance sheet, and cash flow statement for the completed month.
Monitoring of closing processes: The software enables users to monitor the progress of the month-end closing and ensure that all necessary steps are properly executed.
Archiving of closing documents: The software allows for archiving and storing of closing reports, financial statements, and other relevant documents for the month-end closing to review or reference them later when needed.