bókhaldslok

Bókhaldslok refers to the Icelandic term for accounting closure or year-end closing procedures. It encompasses the systematic process of finalizing financial records for a specific accounting period, typically a fiscal year. This involves a series of steps designed to ensure accuracy and completeness of financial statements.

Key activities within bókhaldslok include reconciling bank accounts, verifying all transactions have been recorded, and adjusting entries for items such as depreciation, accruals, and prepaid expenses. Inventory counts are often performed and valued, and accounts receivable and payable are reviewed to ensure their balances are correct. The goal is to arrive at a true and fair view of the company's financial position and performance.

Once these adjustments and reconciliations are complete, financial statements such as the balance sheet, income statement, and cash flow statement are prepared. These statements provide essential information for management decision-making, tax reporting, and external stakeholders like investors and creditors. Bókhaldslok is a critical function for any business, providing a snapshot of its financial health and enabling informed strategic planning.