Rahul (.) (303 Points)
17 June 2011Dear Friends,
Can you let me know what is the meaning of 'Monthly CLosing of Accounts' ? Now a days a lot of job opputunities are there which includes monthly closing of accounts.
What does monthly closing exactly mean? Can someone help me in getting good resources to to have a good understanding on the procedure.
Please Help
Suresh
(Service)
(91 Points)
Replied 17 June 2011
It is nothing but drawing a line at the end of month with the data upon preparation of financial statements. This is because of the assumption that corporate have to submit lot of reports internally as well as to external agencies and changing the figures upon these submission leads to mismatch of data. Even some banks/statutory agencies can ask for explanation in case of mismatch.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 17 June 2011
| Originally posted by : Suresh | ||
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It is nothing but drawing a line at the end of month with the data upon preparation of financial statements. This is because of the assumption that corporate have to submit lot of reports internally as well as to external agencies and changing the figures upon these submission leads to mismatch of data. Even some banks/statutory agencies can ask for explanation in case of mismatch. |
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yes agreed
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 17 June 2011
This will also very much helful if a company adopt a budgetbased accounts. You can know the position as where you are standing in the financial strength of the company. If someting goes beyond budget you can scrutinize then & there before annual closing to put an end to these hundles.
CAclubindia
