Accounting closing process is the procedure that records the financial transactions and activities of a business during a specific accounting period. The closing process prepares financial statements by processing all the information gathered during the recording period. In accounting, there are two modes of closing procedures namely; manual closure and computerized accounting closure.
By the end of a fiscal year, the accounts of a business must be closed to avoid errors and omissions in preparation of financial statements. Closing also involves an audit of accounts to ensure that all transactions were recorded correctly.