A task force may be assigned for universal issues. Use the sheet for monthly, quarterly, and annual tasks. Close the books with less runaround. Share this sheet with your accounting team to easily manage your financial month end process and keep everyone on schedule. Communication – this would include both accounting and non-accounting personnel. Ensure that all owners have an understanding of their role and expectations. As you can see, everything starts with the prior period’s balance sheet. This is the starting point for all of the reports because it shows the asset, liability, and equity accounts at the beginning of the period. The income statement formula is connected to the matching principle of accounting, which posts revenue when it is earned and expenses when they are incurred to produce revenue.