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Study Accounting
When an accounting period ends, there is a series of steps that must be taken to prepare a business’ books for the next accounting period to start. This series of steps is called the accounting cycle, and it includes things like posting journal entries to the general ledger, creating trial balances, and making closing entries.

Accounting used to be done by hand in physical ledgers, or books. Today, when we say “closing the books,” we simply mean taking the final steps in the accounting cycle to prepare financial statements.

A general ledger is a total record of all of your business’ financial transactions, both debit and credit included. This document is required to prepare all financial statements.

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