Period Close

Closing the books turns a running set of transactions into a finalized record for a period. Caydem gives the close real structure: a checklist, reviewer sign-offs, and period locking — so the numbers you report are the numbers of record. This guide covers the month-end workflow, sign-offs, locking and reopening, and year-end.

Period states

Each fiscal period in Caydem moves through a clear set of states:

• Open — the period accepts new and edited journal entries. This is where day-to-day activity lands.
• Closed — the close workflow has been completed and the period has been signed off. Activity is finalized.
• Locked — the period is sealed against back-dated edits. Posting to a locked period is prevented.
• Audited — the period has been signed off and is associated with an external audit engagement (see CPA Audit Access).

Periods are generated from your fiscal calendar during Company Setup, and you work through them one at a time.

The month-end workflow

A disciplined month-end follows the same rhythm every period. A typical Caydem close looks like this:

1. Record all activity — ensure every transaction for the month is posted: invoices, bills, payments, and any recurring entries.
2. Post adjusting entries — accruals, deferrals, depreciation, and other period-end adjustments.
3. Reconcile — confirm that account balances agree with their supporting records (bank statements, subledgers, schedules).
4. Review the statements — generate the trial balance, balance sheet, and income statement and review them for reasonableness.
5. Work the close checklist — step through the close tasks for the period, confirming each is complete.
6. Capture sign-off — the reviewer signs off that the period is complete and correct.
7. Close and lock — close the period and lock it against further edits.

Following the same sequence every month makes the close faster and the results more reliable.

Sign-offs

Before a period is finalized, Caydem captures a sign-off — a record of who reviewed the period and when. This is a control: it establishes accountability for the closed numbers.

• Sign-off is governed by role-based access, so only authorized reviewers can finalize a period.
• The sign-off records the reviewer and the timestamp, creating an audit trail of the review.
• When auditors arrive, these sign-offs are part of the evidence that your close controls were followed.

Sign-offs are why the close is more than just “stop posting.” They turn the act of closing into an accountable, reviewable control.

Locking periods

Once a period is closed and signed off, lock it. Locking prevents back-dated entries from changing finalized results.

• With a period locked, journal entries cannot post to dates within it. The numbers you reported stay the numbers of record.
• Locking is what gives downstream reports their integrity — a balance sheet for a locked period will not silently change underneath you.

If you try to post to a locked period, Caydem stops you and explains why, so there are no surprises.

Reopening a period

Occasionally a closed period must be reopened — a material error is found, or a late adjustment is required. Reopening is supported, but it is deliberately controlled.

• Permissions — only roles with the appropriate authority can reopen a closed or locked period.
• Audit trail — the reopen is recorded, so there is a visible history of when a finalized period was reopened and by whom.
• Re-close — after making the correction, run the close steps again and re-lock the period.

Treat reopening as the exception, not the routine. The cleaner approach for most corrections is a correcting entry in the current open period — see Journals & Entries.

Year-end procedures

The year-end close builds on the monthly rhythm with a few additional steps that finalize the fiscal year:

1. Close the final period — complete the month-end close for the last period of the fiscal year as usual.
2. Post year-end adjustments — record any final adjustments identified during year-end review.
3. Roll forward retained earnings — net income for the year is carried into retained earnings, resetting revenue and expense accounts for the new year.
4. Open the new fiscal year — Caydem carries balance sheet balances forward and opens the first period of the new year for activity.
5. Lock the prior year — seal the completed fiscal year so its results are final.

After year-end, your new fiscal year starts with correct opening balances and a clean slate for revenue and expenses.

Next steps

• Review the entry mechanics behind adjustments in Journals & Entries.
• When the audit begins, set up the engagement in CPA Audit Access.