Part IV

Preparing the Books for Year’s (Or Month’s) End

In this part . . .

Eventually, every accounting period comes to an end, and whether it’s the end of a month, a quarter, or a year, you need to check your work and get ready to close out the period.

This part introduces you to the process of preparing your books for closing out an accounting period. You find out about the key adjustments needed to record depreciation of your assets, such as cars and buildings, and get a chance to practice them. This part also shows you how to calculate and record your interest payments and income in your books.

To round out the closing process, I show you how to prove out your books by checking your cash, testing your book’s balance, and making any needed adjustments or corrections.