Month-End Close
Definition
The monthly process of reconciling every account, recording adjustments and locking the books so the financial statements are accurate and final.
Want a deeper explanation?
The close is what turns a pile of transactions into numbers you can trust. Without it, reports are drafts that may change later, which makes them risky to base decisions on.
A good close runs on a checklist and a deadline every month, so you get reports while they are still useful. Watch for: books that are regularly more than a month behind, because decisions are then being made on stale or guessed numbers.
Example
By the 15th, bank, credit card, Amazon and Shopify clearing accounts are reconciled, inventory and COGS are booked, and the P&L is reviewed before reports go out.