Accounting periods help your company organize and monitor financial performance by
defining specific time frames for business reports. Ensure accurate financial reporting and
streamlined record-keeping by associating billing transactions to legal entity accounting
periods.
Required Editions
- What are Accounting Periods?
An accounting period is a specific time frame for which a company prepares its financial statements. For example, a month, quarter, or an year. It's a fundamental concept in accounting, as it dictates how and when revenue and expenses are recognized. Define start and end dates on the accounting periods to prevent overlaps or gaps and maintain a clean financial record for auditing purposes.
- Create Accounting Periods
Create accounting periods to organize and store financial information for specific time frames. For example, if your company tracks performance quarterly, define quarterly accounting periods.
- Assign Legal Entities to Accounting Periods
Assign legal entities to accounting periods, and associate each billing transaction to a specific accounting period of a legal entity.
