What is parallel close?

Parallel close is the process of closing the same accounting period in two accounting systems at the same time to compare financial results and validate accuracy before fully transitioning to a new system. Businesses often use a parallel close when implementing new accounting software to build confidence before making the new platform their system of record.

Example: A company completes month-end close in both its existing accounting software and Digits to confirm that financial statements match before fully migrating.

Related terms: Month-End Close, Data Migration, System of Record, Financial Statements, Reconciliation