Annual financial statements
Annual financial statements refer to the formal close of a financial year in which postings are checked, accrued and reviewed so that the balance sheet and profit and loss account can be prepared completely and as of the reporting date. The annual financial statements typically include the clean-up of operational data, account reconciliations, the valuation of inventories including stocktaking, as well as necessary closing entries by journal entry and the period-end close, so companies can complete the year-end process on a reliable and timely basis.