The phrase close of business is commonly used in our day-to-day communications, such as emails, workplace communications, and with different organizations. People rely on it to signal when something must be done by a certain time in a given day, yet it often creates uncertainty because it sounds precise without actually stating a time.
A common situation is receiving an email asking for documents by the close of business and wondering whether that means late afternoon, early evening, or the moment the office doors close.
Have you ever wondered what “close of business” means and what time it actually refers to? In this article, we will break down the meaning of the phrase “close of business” so you are no longer confused about its meaning.
What Does “Close of Business” Mean
Close of business generally refers to the end of a business’s operating day. A business day is a day when an organization is operational and open for business. We have written an article on the meaning of a business day (in case you are interested). In essence, the close of business is the point in time when a business stops its normal daily activities and officially closes for the day.
From the business’s perspective, the close of business is the point in a given day when they no longer sell products or services, stop responding to customers and inquiries, and cease performing any tasks until the business opens the next day (or business day).
For example, if a company’s office closes at 5:00 p.m., the close of business for this company will be understood to be 5:00 p.m. On the other hand, if another company closes at 9:00 p.m., they will consider their close of business to be 9:00 p.m.
What Time Does Close of Business Refer To
We use the phrase close of business in common language, and, unfortunately, there is no universal time that defines close of business. For the phrase close of business to have a specific meaning, it must be associated with a specific business, as its meaning will depend on the business and its regular hours of operation.
Broadly, because many businesses in different industries traditionally closed at 5:00 p.m., the common understanding of the phrase “close of business” is 5:00 p.m. local time. However, this is not a fixed and definitive meaning of this phrase.
For example, you call an accountant’s office and ask to meet with someone. However, they respond by saying that the last appointment is at 4:00 p.m., before their close of business. In this example, the phrase “close of business” clearly refers to 5:00 p.m., consistent with how most people understand it.
However, note that different businesses may have different closing times depending on their industry or location. For instance, a professional services firm may treat the close of business as 5:00 p.m., while a customer support center that operates later may treat the close of business as 8:00 p.m.
If you are interested in learning more about how long a business day is, be sure to read our article on this.
How “Close of Business” Is Commonly Used
The phrase close of business is frequently used to set a deadline within a given day without specifying an exact hour. It appears in internal communications, client emails, contracts, and policy documents.
For example, your boss asks you to order office supplies. Given it’s late in the day, you respond to your boss that you’ll try, but it may be difficult as we are nearing the close of business. In this example, you use the phrase “close of business” because you assume the vendor closes at 5:00 p.m., but you are not sure. Instead of committing yourself to 5:00 p.m., you use the phrase close of business as it’s a more convenient way of saying the same thing without being too precise.
To give you a better sense of how we use “close of business” in common language, here are some potential uses:
- Requests for information or documents by the close of business (referring to the end of the business day, but without being precise)
- Instructions to complete tasks before the close of business (meaning that you should do the task before you go home)
- Contacting customer service before the close of business (this means that you should call customer service before the company closes for the day)
When this phrase is used in everyday language, the speaker often assumes the other person shares the same understanding of when the business day ends. For example, a manager may request a report by the close of business, assuming the team understands this means before the office closes for the day.
So long as you are comfortable knowing that the person with whom you are interacting has a similar understanding of the meaning of this phrase as you, then you should not run into any communication issues. However, if you consider the close of business to be 5:00 p.m. while the other person considers it to be 9:00 p.m., this may lead to unexpected outcomes or misunderstandings.
Close of Business in a Legal Context
In legal settings, the close of business can have significant consequences. Deadlines tied to the close of business may determine whether a notice is timely, whether a right is preserved, or whether a payment is late. If the close of business is not clearly defined, disagreements can arise about whether an action occurred on time.
For example, a contract may require notice to be delivered by the close of business on a certain date. If one party delivers the notice at 6:00 p.m. and the business normally closes at 5:00 p.m., the receiving party may argue that the notice was late.
Using the phrase “close of business” in contracts can cause confusion because there is no fixed, universal definition. We give this phrase meaning based on custom, rather than a fixed rule. As a result, it would be more appropriate to refer to an actual time in a day for the purposes of a contract or a legal obligation than to leave it to the other party to guess.
Common Misunderstandings About Close of Business
Many misunderstandings come from assuming that the close of business has a standard meaning across all businesses. For a person in the retail industry, when referring to the close of business, they may mean 9:00 p.m. (as retail stores often stay open late). On the other hand, if a person works at a marketing agency, they may consider the close of business to be 5:00 p.m., as many offices close at that time.
Here are some common misconceptions of this phrase:
- Assuming the close of business always means 5:00 p.m.
- Believing the close of business refers to midnight (being officially the end of a day in general)
- Assuming it matches the end of a calendar day
These assumptions can be incorrect if they do not align with a business’s actual operating hours. For example, someone may submit a document at 11:00 p.m. believing it meets a close-of-business deadline, only to learn that the business closed hours earlier.
How to Avoid Confusion When Using Close of Business
The best way to avoid confusion is to be specific rather than relying on general phrases. When timing matters, the close of business should be clarified or defined.
On the other hand, if you are speaking informally with someone or in a general conversation, using the phrase “close of business” is perfectly fine, as you are not expecting a same-day response or dealing with a specific deadline. However, if it is important that something be done, a task be completed, or a deadline be met, it’s best to be as specific as possible rather than using a phrase that can lead to interpretation.
Here are some practical steps for you to be clear, when necessary:
- Stating an exact time along with the date
- Defining the close of business in requests or policies
- Confirming the applicable time zone
For example, instead of requesting materials by close of business, a message may state that materials are due by 5:00 p.m. local time on a specific date.
Related Terms and How They Compare
The term “close of business” is often confused with similar expressions used in workplace communication.
- ” End of day” is sometimes used interchangeably, though it can also refer to the end of the calendar day.
- Business hours refer to the full period during which a business operates, not just the ending point.
- After hours generally refers to any time outside normal business hours.
For example, a business may state that payments received after the close of business will be processed the next business day.
Frequently Asked Questions
- Is close of business the same as end of day? Close of business usually refers to the end of a business’s operating hours, while end of day can sometimes be interpreted as later in the afternoon, evening, or even the calendar day. The two are not always the same.
- Does close of business have a legal definition? Close of business is not universally defined by law. Its meaning often depends on business practice, contract terms, definitions in policies and procedures, or the specific circumstances involved.
- Does close of business include weekends? Close of business generally applies to a business day. If a business is closed on weekends, the close-of-business time does not apply on those days unless the business operates then.
Takeaways
Close of business refers to the point when a business finishes its operating day, but the exact time depends on the business itself. Because the phrase sounds precise while remaining undefined, it can cause confusion when used without clarification.
In common language, we usually understand the close of business to refer to 5:00 p.m., local time. However, this assumption is not widely accepted, as others may interpret the end of business as a different time of day (e.g., 9:00 p.m.). When deadlines, rights, or obligations depend on timing, clearly stating an exact time instead of relying on close of business helps avoid misunderstandings and ensures everyone is working from the same expectations.
