Year-end closing: five habits for a year-end without nasty surprises

Many business owners discover their result months after the end of the financial year, when it is too late to act. Yet the decisions that matter are made before the year closes. Here are the five habits we review with each of our clients.

1. 1.
   Estimate the result two months before year-end

   A reliable estimate lets you decide in time: bringing forward or postponing investments, director pay, setting up justified provisions.

2. 2.
   Check advance tax payments

   In corporate tax, insufficient advance payments lead to a surcharge. A final payment before the deadline can avoid it.

3. 3.
   Review customer receivables

   Doubtful debts must be identified, chased and, where appropriate, recorded in the accounts. It is also a chance to shorten collection times.

4. 4.
   Count stock and fixed assets

   An up-to-date inventory avoids gaps between the books and reality, and lets you remove equipment that no longer exists from the balance sheet.

5. 5.
   Prepare next year's pay

   The choice between salary, benefits and dividends is prepared upfront, taking indexed brackets and social security contributions into account.

After year-end: the calendar

Closing the books starts a series of deadlines. Annual accounts must be approved by the general meeting within six months of the year-end, then filed with the National Bank of Belgium within the legal deadline. The corporate tax return follows the calendar set each year by the authorities. Delays at any of these stages lead to fees or fines, and can complicate a loan application.

• Preparing the annual accounts and the notes.
• Notice and minutes of the general meeting, decision on the allocation of profit.
• Filing the accounts with the National Bank of Belgium.
• Corporate tax return and checking the tax assessment.

What we prepare for you

For each client we prepare an estimated result before year-end, a summary of the decisions to make (pay, advance payments, investments, dividends), then all the legal documents: annual accounts, minutes and returns. Key figures and the balance sheet are available in your client area, so you can track changes from one year to the next.

A well-prepared year-end means a simpler return, fewer adjustments and decisions made at the right time. We go through this with each client as their financial year draws to a close.