Closing entries are the journal entries made at the end of an accounting period to transfer temporary account balances (such as revenue and expense accounts) to a company’s permanent balance sheet accounts (such as retained earnings). This process helps reset the temporary accounts for the next accounting period and ensures that all revenue and expense transactions are properly accounted for in the financial statements.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.