What is one of the steps you should complete before closing a client's books?

Reconciliation of all bank and credit card accounts is a crucial step to complete before closing a client's books. This process ensures that the financial records are accurate and match the actual statements from financial institutions. By reconciling these accounts, any discrepancies can be identified and corrected, which helps maintain the integrity of the financial data. It ensures that all transactions are accounted for and properly categorized, allowing for accurate financial reporting and analysis.

If this step is skipped, there may be unresolved errors that could lead to misleading financial statements, affecting both the client's decision-making and compliance with any regulatory requirements. Completing this thorough reconciliation provides a solid foundation for closing the books confidently, ensuring that the financial records are complete and accurate for the reporting period.