Also known as "closing the books," year-end closing is the process of reviewing, reconciling, and verifying that all financial transactions and aspects of the company ledgers from the past fiscal year add up. This involves calculating the business expenses, income, revenue, assets, investments, equity, and more.

Tasks usually include: Checking your annual budget against the reality of earnings or losses, and then documenting the results. Compiling statements such as itemized profit and loss, cash flow and balance sheets. Reviewing credits and debits to determine if these match up, also known as reconciling accounts.