Checklist for year end closing
When preparing the year-end closing correctly in accordance with laws and regulations, it is important that the right information is reported and included in the closing. Here is a simple checklist you can use in connection with the year-end closing.
Preparing the Year-End Accounts
To ensure compliance with laws and regulations, it is essential that all information is accurately reported and included in the year-end accounts. It is advisable to start preparing for the annual accounts towards the end of the fiscal year to ensure everything is completed on time.
Shareholder Register Report:
If you own a limited company, you must submit the Shareholder Register Report by 31 January. This report should include details of all shareholders. Any changes in shareholding during the year must be reported, including:
- Number of shares transferred
- Compensation for shares
- Names of buyers and sellers
- Changes in share capital
- Withdrawals by shareholders and close associates, including approved dividends, loans, and other financial transactions
Deadline: 31 January
Fixed Assets
Review all fixed assets to confirm that they are in use and that any retired or sold assets are correctly removed from the accounts. Verify the depreciation method, rate, and useful life applied. If you plan new acquisitions, consider whether purchasing before or after year-end offers tax advantages.
Review all fixed assets to confirm that they are in use and that any retired or sold assets are correctly removed from the accounts. Verify the depreciation method, rate, and useful life applied. If you plan new acquisitions, consider whether purchasing before or after year-end offers tax advantages.
Deadline: 31 December
Inventory
Inventory
Businesses with inventory must conduct a stocktake as of 31 December. A stocktaking list should record who performed the count and when, and include all items, even those not for immediate sale. Consult your accountant if you are unsure about stocktaking rules and documentation requirements
Deadline: 31 December
Accounts Receivable
Review accounts receivable to identify potential write-offs. Recording losses before 31 December may provide tax benefits in the current fiscal year. Ensure all unbilled work and advance invoices are also documented.
Deadline: well before 31 December
Cash Count
Companies holding cash on hand must perform a physical cash count as of 31 December, confirmed by the person conducting the count. Only cash is counted; gift cards or other prepayments should be accounted for separately.
Deadline: 31 December
Withdrawal of Goods for Owners or Business Use
All owner withdrawals or goods used in the business must be continuously recorded to ensure accurate VAT reporting. Any unrecorded transactions must be included in the year-end accounts.
Deadline: Continuous, no later than 31 December
Company Car Mileage
Company Car Mileage
Record company car mileage as of 31 December, including the vehicle type/model and registration number if it is new.
Deadline: 31 December
Private Car Used for Business
Maintain an up-to-date logbook or travel expense records for private cars used for business purposes. For commutes exceeding 2.5 km, record the travel distance.
Deadline: 31 December
Posting Transactions to the Correct Fiscal Year
Posting Transactions to the Correct Fiscal Year
It is crucial to post all transactions in the correct fiscal year and accounting period:
- Transactions with an invoice date within the current year must be included in the VAT return for the 6th term.
- Transactions relating to the delivery of goods and services in the current year must also be recognized in this fiscal year, even if the invoice date is in the following year.
This ensures accurate financial statements.
Tax Return Information for Sole Proprietors
Tax Return Information for Sole Proprietors
Sole proprietors should provide all necessary supporting information, including:
- Annual statement of private bank deposits, shares, and debts
- Payroll statements for income from others and sickness benefits
- Insurance statements, including life insurance
- Premium payments for voluntary insurance, health insurance, and personal pension schemes
- Childcare expenses
- Changes in private assets (cars, boats, real estate, etc.)
- Insurance values for household contents and boats
- Changes in family situation
Year-End Payroll Reporting
When reporting in Altinn, the deadline is the first working day of January following the fiscal year. To reduce extra work and costs, include all relevant payroll information in the December payroll.
Common reportable benefits include:
- Insurance contributions
- Pension schemes
- Toll subscriptions
- Employee discounts
- Travel allowances
- Electronic communication devices
- Third-party discounts
- Work clothing
- Low-interest loans
- Free meals, accommodation, or housing
- Subsidized canteen meals
- Free gym memberships
- Tips
Deadline: Include all reportable benefits before the last payroll in December, ensuring submission in Altinn by 1 January.
Annual Statements from Insurance Companies
Insurance statements may include taxable benefits for employees. These must be provided to the payroll administrator no later than the last regular payroll of the year.
Insurance statements may include taxable benefits for employees. These must be provided to the payroll administrator no later than the last regular payroll of the year.
Deadline: Same as other payroll inputs, before the last payroll in December
Summary
This checklist ensures a smooth year-end closing and helps maintain compliance with accounting and tax regulations.
Azets offers year-end closing support and consulting services for all types of companies at competitive rates. Contact us for assistance with preparing accurate annual accounts.