Period close

A close usually includes posting all charges, payments and bills for the month, reconciling bank accounts, reviewing receivables and payables, posting accruals and adjusting entries, and then locking the period.

Locking prevents back-dated changes to reports that owners, lenders or auditors have already received. A regular close calendar keeps owner statements on schedule. Adjustments after the lock are usually made in the current open period, with a note explaining the correction.