CLOSING ENTRIES: Everything You Need To Know

💥Closing Entries Cheat Sheet → accountingstuff.com/shop
In this video you'll learn what Closing Entries mean and I'll show you how they work using an example. We'll cover the differences between Temporary and Permanent Accounts, and a trick to remember which accounts fall into each category. You'll also see how to post Closing Entries in two different ways: the Long Way and the Short Way.
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⏱️TIMESTAMPS
00:00 - Intro
00:20 - The Accounting Cycle
00:41 - Closing Entries Definition
01:09 - How to Remember Permanent and Temporary Accounts (RED ALE)
02:13 - Permanent Account Definition
02:27 - Temporary Account Definition
02:54 - Opening Trial Balance
03:16 - Example
04:05 - Adjusted Trial Balance
04:49 - Creating Financial Statements
05:46 - How to Post Closing Entries
05:55 - Long Way: Step 1
07:34 - Long Way: Step 2
09:08 - Long Way: Step 3
10:09 - Long Way: Step 4
11:15 - Post Closing Trial Balance
11:39 - Short Way
12:34 - Recap: How to Post Closing Entries
03:37 - Outro
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#accounting #financialstatements #accountingstuff

[@AccountingStuff]

Happy Holidays! Here are the timestamps... 00:00 - Intro 00:20 - The Accounting Cycle 00:41 - Closing Entries Definition 01:09 - How to Remember Permanent and Temporary Accounts (RED ALE) 02:13 - Permanent Account Definition 02:27 - Temporary Account Definition 02:54 - Opening Trial Balance 03:16 - Example 04:05 - Adjusted Trial Balance 04:49 - Creating Financial Statements 05:46 - How to Post Closing Entries 05:55 - Long Way: Step 1 07:34 - Long Way: Step 2 09:08 - Long Way: Step 3 10:09 - Long Way: Step 4 11:15 - Post Closing Trial Balance 11:39 - Short Way 12:34 - Recap: How to Post Closing Entries 03:37 - Outro

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[@AccountingStuff]

@@somebye3sandiago623 No worries, and best of luck!!! All my depreciation videos are in this playlist... kzbin.info/aero/PL5zKSeS09l324hTFoBXWq9T3tUY_LUrn2

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I went through my whole 4 year degree in accounting never really understanding this. My Professors and text book were awful. And here in a single video, less than 14 minutes in length, I not only understand it, but it seems very logical. Seriously, amazing videos. Really appreciated. Thank you!

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Me too :( .. It's all making sense now!!

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Accounting education is a joke. 15 year CPA here…I learned 95% of what I know on the job. Accounting is an “intellectual trade” best learned by doing. Also, many of these professors never really worked in a CPA firm or even in industry..useless academics mostly.

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Thanks for your kind words :)

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[@AccountingStuff]

No problem Patrick, glad it's making sense :)

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[@AccountingStuff]

Thanks Esther!

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Thanks!!

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Thanks for your feedback :)

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Perfect timing!

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No problem, you're welcome :)

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Hope it made sense!

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Thanks for your kind words!

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Happy to help!

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[@AccountingStuff]

Glad it was helpful!

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No problem, happy to help :)

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No problem Laura, hope it's making sense :)

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Thanks, I'm glad you're finding these useful! All the best with your studies :)

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James, thank you for showing the long way first. When I train a new employee I always show them the long way first. And, then after a couple of weeks I show the short way. Not understanding the process does not help the employee or the business in the long run. I finally understand closing entries! Kudos to your teaching style!

[@AccountingStuff]

No problem! Glad you found it useful :)

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[@AccountingStuff]

@@julioson50th21 Thanks I'll keep that in mind :)

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Thanks!

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Thanks!!

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Thanks!!

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[@AccountingStuff]

No problem, hope it's all making sense :)

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Cheers buddy!

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Cheers Veronica!

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No problem Pedro. Best of luck in your exam tomorrow!!

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Thanks Salman :)

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No problem, you're very welcome :)

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No problem, glad you found it useful :)

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Happy to hear that!

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Great video!

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Thanks Lynda!

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Clear explanation, complete step by step guide. Accurate useful information. I am currently designing a basic accounting cloud system and this is the only video helped me with the IT design process for Closing entries. Thank you very much.

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Cheers Val! Best of luck with your project :)

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Thank you so much ! Much appreciated

[@AccountingStuff]

No worries!

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Thank you for what you do 🙌🏼

[@AccountingStuff]

No worries, I'm happy to help!

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Bro this is awesome one.. I missed reading closing entry topic in my whole education. Now understood perfectly.

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Great to hear it's making sense :)

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Great to hear that you're considering accounting! Best of luck with it all

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Cheers Gabriel!

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Brilliant summary

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Cheers Paolo!

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Thank You so much James for making this amazing videos! As a finance student learning about accounting, this videos are very helpful! They give me incentives to further my understanding of accounting!

[@AccountingStuff]

No problem, I'm glad you're finding them helpful. All the best with your studies!

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Amazing thank u so much ...great effort

[@AccountingStuff]

No problem, you're most welcome 😊