Endofmonth

End of month (EOM) is the last day of a calendar month and is commonly used as a cut-off point for financial reporting, payroll processing, invoicing, and performance analysis. In accounting, the end of month marks the close of a reporting period, after which figures are summarized and reported.

Month-end close is the sequence of tasks that prepare financial statements for the period. Typical activities include reconciling sub-ledgers to the general ledger, recognizing revenues and expenses in the correct period, posting accruals and deferrals, calculating depreciation and amortization, updating inventory valuations, and generating statements such as the income statement, balance sheet, and cash flow statement. Variance analysis against budgets or forecasts is often performed at this time.

Timing and practices vary by organization and jurisdiction. Some entities close on the last calendar day; others close on the next business day. In many systems, end-of-month processing is automated with batch jobs and scheduled reports. The EOM close is distinct from other period closes, such as quarter-end or year-end, and may be subject to stricter internal controls or regulatory requirements.

In daily operations, coordination across departments helps ensure transactions are recorded in the proper period, with defined cut-off procedures to avoid double-counting or omissions. End-of-month reporting informs management decisions, external filings, and performance measurement.

See also: end-of-period, month-end close, EOM, GAAP, IFRS.