Closing The Accounting Period

You should always close an accounting period on a timely basis using a standard set of procedures.

Although many procedures that you perform when you close an accounting period are common to all companies, the timing and performance of specific procedures vary greatly from one company to another. Use the following procedures as general guidelines for developing your own.

The table below provides a step-by-step overview. Following the table are more detailed descriptions of each step.

Step	Description
1.	Post all adjusting journal entries.
2.	Post all journals to the general ledger.
3.	Post and then freeze the general ledger.
4.	Run a test close.
5.	Reconcile labor history to the general ledger..
6.	Update financial statement summary balances.
7.	Enter and post intercompany receivables.
8.	Reconcile subsidiary ledgers to financial statements.
9.	Load labor rates for revenue and billings.
10.	Process and post billings.
11.	Perform pool maintenance.
12.	Compute and process indirect rates.
13.	Post indirect rates.
14.	Reconcile the statement of indirect expenses to the income statement.
15.	Compute burden cost.
16.	Compare project ledger to the general ledger.
17.	Process revenue and then post.
18.	Run the Update Project Status Report Table process and the Update Other Project Report Tables process.
19.	Update financial statement summary balances.
20.	Print and review financial statements.
21.	Reconcile the income statement to organizational cost summary, project status report, and revenue summary.
22.	Reconcile unbilled analysis to the balance sheet.
23.	Reconcile other material balances on the financial statements.
24.	Make any necessary adjustments to correct problems found while performing the above steps and reprocess as necessary.
25.	Print final financial statements.
26.	Close the period.