Accounting · August 26, 2026 · 2 min read
Closing the accounting year: a complete checklist for entrepreneurs
The end of the accounting year is not just a legal obligation – it is an opportunity to get an accurate picture of the company’s financial performance. A well-prepared year-end close will save you stress and possible penalties. Go through this checklist.
1. Stocktaking of assets and liabilities
Compare the actual state (warehouse, cash desk, assets) with the accounts and document any differences. Stocktaking is the foundation of reliable financial statements.
2. Checking documents and posting outstanding entries
Check that all invoices, cash vouchers and bank statements for the whole period have been posted. Watch out for documents that arrived late.
3. Accruals and deferrals
Post costs and revenue to the period to which they actually belong (e.g. prepaid rent, insurance premiums). This gives you a true picture of the financial result.
4. Valuation allowances and provisions
Review overdue receivables and create valuation allowances for those at risk. Consider provisions for known future expenses.
5. Depreciation of assets
Post the annual depreciation of fixed assets according to the depreciation plan.
6. Checking tax deductibility
Go through your costs from the point of view of tax deductibility – some are deductible only once paid or only up to a certain limit.
7. Preparing and filing the financial statements
Prepare the financial statements based on the closing entries and file them on time together with the tax return.
Related articles: Stocktaking and warehouse stock: a practical guide, How to take over the accounts from a previous accountant without errors, Financial statements of an s.r.o.: what they contain and when to file them.
Frequently asked questions
By when must the financial statements be filed?
As a rule, within the deadline for filing the tax return, which can be extended under certain conditions. Check the exact date for the tax period in question.
What if I find an error after filing?
This is what the corrective and the supplementary tax return are for. The sooner you deal with the error, the better – your accountant will advise you.
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