By Leanna Kelly Business happens in real time, but it can take time for everything else to catch up. This includes accounting. Sure, financial transactions may happen instantly, but account reconciliation happens at scheduled times. As a result, many businesses use an accounting period to produce essential financial documentation. During these periods, the business makes a concerted effort to balance its books and get everything current.
Accounting periods serve several very important purposes. Internally, they represent deadlines for the company, such as when interdepartmental budgets are due. For investors and shareholders, they represent a time when the company’s financials become available for review. For …read more
