Closing Entries
Definition
Journal entries made at the end of an accounting period to transfer balances from temporary accounts (revenue, expenses, dividends) into permanent equity accounts, resetting the temporary accounts to zero for the next period. Part of the month-end and year-end close. HelloBooks generates closing entries automatically.
Related Terms in Core Accounting
Month-End Close
The process of finalizing a business's books at the end of each month — reconciling bank and credit-card accounts, posting accruals and adjustments, reviewing the trial balance, and locking the period. A faster close means timelier financial reporting. HelloBooks shortens the close with automated reconciliation and a guided close checklist.
Overhead
The ongoing operating costs of running a business that are not directly tied to producing a specific product or service — rent, utilities, insurance, administrative salaries, and software. Overhead is allocated across products to understand true profitability. HelloBooks tracks overhead by category for accurate cost and margin reporting.
Amortization
The gradual write-off of the cost of an intangible asset (patents, goodwill, software licences) over its useful life — the intangible-asset equivalent of depreciation. Amortization also describes spreading loan repayments into equal periodic instalments of principal and interest. HelloBooks posts amortization schedules automatically.
Accounts Payable (AP)
Money your business owes to suppliers and vendors for goods or services received but not yet paid for. Tracked as a current liability on the balance sheet. HelloBooks automates AP with purchase orders, GRN matching, and vendor bill management.
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