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Interim closing
Explain why a business will normally prepare interim statements at the end of each month and close the books only once a year. Include in your discussion the difference between interim period and the end of an accounting cycle. What will happen if a company chooses to not close the books.
interim closing is done to have mangement reports of profitability and other purposes, like analysis of budgeted vs actual and so on. in many counteries quarterly closing and publishing of financial statements is required for companies listed in stock exchanges. there are many other reasons due to which interim clsoing is required
closing of books is a security measure. after you close your books on year end no one can make adjustments in it and people relying and investing in the company have some security that company books are original and can trust on auditors report
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