Fiscal Year Closing

Fiscal Year Closing – Fiscal Year Closing is the process of finalizing all financial records and accounts at the end of a company’s accounting year, typically to assess financial performance, comply with statutory requirements, and prepare for audits and tax filings. In India, the fiscal year runs from 1 April to 31 March. This process involves reconciling accounts, recording all transactions, valuing assets and liabilities, calculating profits or losses, and generating financial statements such as the balance sheet and profit & loss account.

Examples: Businesses closing their books on 31 March to prepare annual financial statements. Companies arranging for audits to verify financial records before filing tax returns. Reconciling bank statements, outstanding invoices, and inventory before finalizing accounts. In short, fiscal year closing is the systematic wrap-up of all accounting activities at year-end to ensure accurate financial reporting and compliance with regulations.