The end of the year is approaching, and with it the closing of the accounts. For SMEs and self-employed people, it is also the last opportunity to influence the accounting and tax position for the financial year. Here are seven checks to carry out now, to avoid a race against the clock in January.
1. Take stock of your debtors and creditors
Chase up invoices that are still outstanding and identify those where payment looks at risk: it may be necessary to reflect this in the accounts. On the supplier side, check that all invoices for the financial year have been recorded, including those received late.
2. Reconcile bank accounts and cash
Make sure that every transaction has been recorded and is properly supported. A bank reconciliation brought up to date as at 31 December is the foundation of a reliable year-end closing. Gather the statements for all your accounts, including those in foreign currencies.
3. Take inventory of stock and work in progress
If your business holds stock or has services under way that have not yet been invoiced, a stocktake at the closing date is essential. It allows these items to be valued correctly in the balance sheet.
4. Match expenses and income to the right period
An expense paid in December for the following year, or income that belongs to the financial year but has been neither invoiced nor received: these adjusting entries ensure that each financial year reflects its own activity, and nothing else.
5. Check your VAT returns
Check that all periods of the year have been declared and that the figures match your accounts. It is also a good time to make sure that the VAT return method you have chosen (effective method or net tax rate method) is still suited to your business.
6. Plan ahead for the tax position of the owner-manager and the company
Some measures must be carried out before the end of the year to take effect for the current financial year: a contribution to the third pillar, a buy-in to the pension fund, the choice of remuneration between salary and dividends. Their benefit depends on your situation and on the legal limits: it is best to discuss them with your fiduciary firm early enough.
7. Prepare payroll and social insurance
Gather the information needed for salary certificates and the annual social insurance statements: staff changes, bonuses, expense reimbursements, benefits in kind. Complete data avoids last-minute corrections.
In summary
A well-prepared closing saves time, makes your figures more reliable and enables better decisions for the year ahead. Need a hand? SuisseFidu is here to support you, from keeping your books to your tax return. Book an appointment online or call us on 022 555 82 50.
This article provides general information and is not a substitute for personalised advice.
