Cutoff date

In accounting, the cutoff date is the point in time that delineates when additional business transactions are to be recorded in the following reporting period. For example, January 31 is the cutoff date for all transactions that will be recorded in the month of January. All transactions occurring after that date will be recorded in February or later months. The concept is especially applicable when conducting an inventory audit, where the receiving and shipping functions may be closed down at the end of the cutoff date to ensure that inventory transactions are properly recorded.

Related Courses

Closing the Books 
The Soft Close 
The Year-End Close