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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

EBITDA
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a financial metric used to assess a company's profitability from its core operations.
Expansion Revenue
Expansion revenue refers to the additional revenue generated by your existing customers. It represents the growth in their spending beyond their initial purchase or contracted amount. In simpler terms, it's the money you earn from your customers when they buy more, upgrade their plans, or add new features and services.
Expense Report
An expense report is a document used by individuals or employees to record and report business-related expenses incurred during the course of their work.
Financial Reconciliation
Financial reconciliation, or account reconciliation, is the process of comparing two or more business records to confirm the information they contain matches. This ensures accuracy across the business, reduces revenue leakage, supports compliance processes and equips decision-makers with the most reliable data possible.
Financials First
‘Financials First’ is an approach or strategy in business software implementation where the financial management modules of an enterprise resource planning (ERP) system, like NetSuite, are implemented and prioritized before other modules or functionalities.
Forecast Variance
Forecast variance is the difference between a predicted result and the actual outcome over a given period for a variety of business activities.