First and foremost it\u2019s important to understand the definition of a period. A reporting or an accounting period is not just a year, it\u2019s not just a quarter, but usually the shortest period measured is a month. \u00a0<\/p>\n
So just with that your procedures for closing a period got more importance and relevance I would say. Closing a period is not just something you do quickly and without giving much thought to it. Yes, it can be a fairly automatic process and you may not be thinking too much about the process itself, however it is essential that you consider all relevant details and pieces of information available to you. For an example when closing a period you ought to consider possible expenses that you haven\u2019t accounted for just yet since you haven\u2019t received an invoice for them. Or for instance whether you\u2019ve accounted for all taxes and exemptions for this period.<\/p>\n
Note here as well that procedures can differ and vary from period to a period, i.e. your closing procedures for the whole year may be more generic whereas each month you\u2019d have a list of routines you carry through. For closing the whole year you\u2019d consider subsequent events in more detail for an example as this information is to be disclosed within the Annual Report itself.<\/p>\n
So as you can see, it is important to define the period your closing your accounts for.<\/p>\n","protected":false},"excerpt":{"rendered":"
First and foremost it\u2019s important to understand the definition of a period. A reporting or an accounting period is not just a year, it\u2019s not just a quarter, but usually the shortest period measured is a month. \u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[74],"tags":[],"class_list":["post-5163","post","type-post","status-publish","format-standard","hentry","category-2-7-accounting-in-itself"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5163"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5163\/revisions"}],"predecessor-version":[{"id":5164,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5163\/revisions\/5164"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5163"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}