What is one of the first steps in the period close process?

Creating a period close checklist is an essential step in the period close process, serving as an organized guide to ensure that all necessary tasks are completed accurately and in a timely manner. This checklist typically includes all key activities that must be performed, such as reconciling accounts, verifying transactions, and preparing relevant documentation. By having this checklist, teams can systematically approach the closing process, minimizing the risk of overlooking important steps and facilitating a smoother transition into the next accounting period.

The other options do not align as closely with the specific functions of the period close process. Reviewing employee benefits may be a routine managerial task but is not directly related to closing financial periods. Finalizing annual reports occurs after the period close process and is not one of the initial steps. Conducting market analysis is part of strategic planning and decision-making, rather than a core activity involved in the financial close of a period.