Finalisation of Books of Accounts

Finalization of Accounts is the process of wrapping up a company’s financial records for a specific period—usually at the end of a financial or fiscal year—in order to prepare accurate financial statements. The goal is to ensure that these statements present a true and fair view of the company’s financial position and performance. This process is built upon the data recorded during regular bookkeeping throughout the year.

Key Steps:

1. Trial Balance – Compile ledger balances.
2. Adjustment Entries – Record year-end adjustments.
3. Financial Statements – Prepare P\&L, Balance Sheet, Cash Flow.
4. Closing Entries – Close temporary accounts.
5. Transfer Balances – Post final balances.
6. Verification – Check accuracy of accounts.
7. Management Review – Present reports to management.
8. Audit & Approval – Final review and sign-off.