Meaning & use

close the books

phrase·Advancedbusinessfinance

Last updated

UK/ˌkləʊz ðə ˈbʊks/
US/ˌkloʊz ðə ˈbʊks/

Meanings

  1. phraseidiombusinessfinance

    To finish recording all financial transactions for a particular period, so that the accounts are complete and can be reviewed.

    Grammar: Used as a verb phrase. It is usually intransitive but can take an object: 'close the books for the year.' The past tense is 'closed the books.'

    Patterns

    • close the books for something
    • close the books on something
    • close the books at the end of something

    We need to close the books for the quarter by next Friday.

    The accountant closed the books on the fiscal year and prepared the reports.

    After closing the books, they found a small error in the records.

  2. phraseidiombusinessfigurative

    To stop doing business or to end an activity permanently, especially after a final settlement.

    Grammar: Often used with 'on': 'close the books on something.' It can be used figuratively for ending any project or matter.

    Patterns

    • close the books on something

    The company decided to close the books on the failed project and move on.

    After years of losses, they finally closed the books on the old factory.

Word forms

third person singularcloses the books
past tenseclosed the books
past participleclosed the books
present participleclosing the books

Common combinations

close the books for the year
The finance team will close the books for the year at the end of December.
close the books on the quarter
We close the books on the quarter next week, so send your receipts now.
close the books early
They decided to close the books early to meet the deadline.
the books are closed
Once the books are closed, no more changes can be made.

Synonyms and how they differ

balance the books
This means making sure that income and spending are equal; 'close the books' is about finishing the accounting period, not necessarily balancing.
settle the accounts
This focuses on paying what is owed; 'close the books' focuses on completing the records.

Opposites

open the books

Word family

bookkeeping noun
The activity of recording financial transactions.
bookkeeper noun
A person who records financial transactions.

Commonly confused: close the books or cook the books?

close the books vs cook the books

This means to falsify financial records illegally; 'close the books' is a normal, legal accounting procedure.

Practice

At the end of each month, the accounting department ______ the books to prepare financial statements.

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