Liabilities can be broken down into current or short-term liabilities, such as accounts payable and taxes, and long-term debt such as bank loans or notes payable to stockholders. Owner’s equity includes any invested capital or retained earnings. 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. 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. Use the sheet for monthly, quarterly, and annual tasks. You should hold a call each day of the close process to gather feedback on progress, and to allow for issue escalation and sharing of any key information. Use the call to track issues and provide feedback to all participants on the progress or status of all relevant issues. We are an $800 million dollar, three business unit company with operations only in the US. We spill into day three only if there is an significant issue to address.