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Year-End Close

Year-end close, or “closing the books”, is the process of reviewing, reconciling and preparing financial statements for the end of the fiscal year. This critical process allows businesses to:

  • Meet regulatory obligations 
  • Establish a clear picture of financial health
  • Highlight areas for growth and optimization
  • Identify trends and challenges
  • Develop future strategies

Because the year-end close activities involve all of a business’s financial documents, it can be a complicated and time-consuming process. Automation strategies can significantly reduce timelines and errors to generate a more complete and accurate view of the business.

Related terms

30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 
Accounts Payable Days
Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.
Accounts Payable Turnover
Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.
Accounts Receivable Turnover
The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.
Advanced Reporting
Advanced reporting refers to a sophisticated approach to generating and analyzing reports using advanced tools, techniques, and technologies.
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to track and measure their predictable, recurring revenue streams over a one-year period.