Hi Mason,

It means that all transaction for that month need to be finalized and booked accordingly.

The first step would be to do the bank reconciliations.  This will make sure that your cash accounts are finalized and closed for that month.  Then you want to review all your expense accounts and make sure that all expenses are accounted for and if not then accruals need to be booked accordingly.  How do you know if an expense account has been finalized?  You need to discuss this with your Mgr.  Different companies have different procedures for closing expense accounts.  Then finally, you want to make sure that all JEs to book depreciations and amortizations has been booked accordingly.  Also, review your income/revenue account, you need to ask yourself, is it complete?  How would you know if its complete?  Compare it with either the budget or the last month's revenue.  Do the same thing for expense account.

Lastly, after you cover all three items above, ask yourself whats new for the month that you are closing, if you don't know the answer to that, discuss it with your mgr.  If you are responsible to close the month, then you will be included in a correspondence if such new things arise.

Please ask me if you need clarification.  I have done this for a living and now am teaching others so that they can do it for a living.

Hope this help.