Tilinpäätöspäiväkirja

Tilinpäätöspäiväkirja is a Finnish term referring to the journal entries made at the end of a financial period to finalize the accounting records. This process is essential for preparing the annual financial statements. It involves recording all necessary adjustments and closing entries that transfer balances from temporary accounts to permanent accounts.

The primary purpose of the tilinpäätöspäiväkirja is to ensure that all revenues and expenses are accurately recognized in the correct period, and that asset, liability, and equity accounts reflect their true financial position at the end of the accounting year. Common entries include accruals, deferrals, depreciation, amortization, and the closing of income and expense accounts. These entries are crucial for compliance with accounting standards and tax regulations.

The preparation of the tilinpäätöspäiväkirja typically follows the trial balance and precedes the creation of the balance sheet and income statement. It serves as a bridge between the ongoing operational accounting and the final financial reporting. Without these closing entries, the financial statements would not accurately represent the company's performance and financial health for the period. The resulting entries are then posted to the general ledger, leading to the final closing trial balance.