In plain words
Closing the month makes the books final for that month. Every bank and card account is reconciled, every bill and invoice is in, and the adjustments are booked: accruals, prepaid expenses, depreciation.
Then the profit and loss statement and the balance sheet are produced and checked. Once a month is closed, nobody changes it without a note saying why.
Example
September, closed by October 10
Every account matched to its statementOct 1 to 5
Late bills accrued to SeptemberOct 6
P&L and balance sheet checkedOct 8
Statements in the owner's inboxOct 10
In our model
agentsperson
Agents do the matching and the routine entries. Your person books the judgment calls, checks everything and signs off. Financials by the 10th.
Agents do the matching and the routine entries. Your person books the judgment calls, checks everything and signs off. Financials by the 10th.