™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Closing Accounts means. If we can be of more help explaining what Closing Accounts is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657 (888-55Books)™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Closing Accounts means:At the end of each period, a bookkeeper finalizes the numbers for the period, and prepares financial statements. Some accounts are temporary, or “nominal”, and need to be reset to zero each period.

Nominal accounts include revenue, expenses, and income. By zeroing out these accounts, the income statement profit or loss for the period is transferred 100% into a capital account, which is shown on the balance sheet.

As a result of these adjustments, the revenue, expense, and income accounts are reset to zero, and ready for the next period.

Need more information or help? Don’t hesitate to give us a call right now at 888-55Books.

All initial consultations are free. Call a Helpful Human today!”[Back to Accounting Terms]