tilinpäätön

Tilinpäätöön is a Finnish term that translates to "closing the books" or "finalizing the accounts" in English. It refers to the process of preparing and reviewing a company's financial statements at the end of an accounting period, typically a fiscal year. The primary goal of tilinpäätöön is to ensure that the financial records are accurate, complete, and compliant with relevant accounting standards and regulations.

The process begins with the preparation of the trial balance, which lists all the accounts and their respective debit and credit balances. This is followed by the preparation of various financial statements, including the income statement, balance sheet, and cash flow statement. These statements provide a comprehensive overview of the company's financial performance and position.

During tilinpäätöön, any necessary adjustments are made to correct errors or omissions in the financial records. This may involve reclassifying transactions, writing off bad debts, or making provisions for liabilities. The process also includes the preparation of notes to the financial statements, which provide additional information and explanations about the company's financial position and performance.

Once the financial statements have been prepared, they are reviewed by the company's management and board of directors to ensure their accuracy and completeness. The statements are then approved and signed off by the company's CEO and CFO, and may be subject to external audit by an independent auditor.

Tilinpäätöön is a critical process for companies, as it provides stakeholders with reliable and transparent financial information. It helps in making informed decisions about the company's financial health, investment potential, and overall performance. The process is governed by Finnish accounting standards and regulations, such as the Finnish Accounting Act and the International Financial Reporting Standards (IFRS).