Finalization of Accounts is the process of closing a company's financial records for a specific period, such as a financial or fiscal year, in preparation for preparing financial statements. The objective of finalization of accounts is to ensure that the financial statements accurately reflect the financial position and performance of the company bookkeeping process provides the data that is used in the accounting process.
"The following are the key componentsof the finalisation of accounts:
1) Trial Balance
2) Adjustment Entries
3) Prepration of Financial Statement (Such as P&L , Balance Sheet, Cash Flow Statement, etc)
4) Closing Entries
5) Transfer of Balances
6) Checking and verifying the final accounts
7) Presentation of final accounts to the management
8) Review by Auditor & Approval by management
| Finalisation of accounts is important for various reasons, including: To comply with legal and regulatory requirements To provide relevant financial information to stakeholders for decision-making To assess the financial performance and health of a company |
