Month-End Close
Definition
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.
Related Terms in Core Accounting
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.
Accrued Expenses
Costs a business has incurred but not yet been billed for or paid, recorded as a liability so the expense lands in the period it belongs to. Typical examples are wages earned but unpaid at month end, interest, and utilities consumed before the invoice arrives. Reversed when the actual bill is booked.
Accrued Revenue
Revenue earned by delivering goods or services that has not yet been invoiced to the customer, recorded as an asset. Common on milestone contracts and retainers where work is performed in one period and billed in the next. The opposite situation to deferred revenue.
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