Year-end financial statements - Key points to remember

Year-End Financial Statements – What You Need to Remember

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Year-End Closing – Your Essential Preparation Guide

The season for preparing annual financial statements and tax returns is fast approaching. To ensure a seamless process and compliance with all regulations, we have compiled a few essential tips on how to prepare your business for the year-end closing.

1. Deadline January 10: Submission of Required Documentation

To stay on schedule, please ensure the following documents are submitted to your accountant by January 10:

  • Accounting Vouchers: Ensure all invoices, receipts, and bank statements for the year are uploaded.
  • Bank Statements: Provide complete statements for all corporate accounts covering the entire fiscal year (unless these are integrated/submitted continuously).
  • Payroll Information: Report all paid salaries, holiday pay, and any other employee benefits that we haven't previously been notified about.
  • Accounts Receivable & Payable: Review and clean up open items. Provide explanations for any outstanding entries that require clarification.

Download your year-end preparation checklist here.

2. Review of Accounts Receivable and Liabilities

Examine your outstanding customer invoices and supplier debt to ensure all entries are accurate. Identify any potential bad debts that need to be written off. Confirm if there are specific unpaid invoices that should be provisioned as losses in the accounts.

3. Dividend Planning for Shareholders

If your company intends to distribute dividends, all necessary calculations and formal documentation must be sent to MPR Accounting. We recommend contacting your dedicated accountant early to plan and calculate the optimal dividend distribution.

4. Updates on Assets, Property, and Investments

Verify that all company assets—such as machinery, buildings, and vehicles—are correctly registered. Ensure that any depreciation, impairment, or changes in value are accounted for. If the company has bought, sold, or devalued property during the year, we require all purchase and sale agreements as vouchers.

5. Taxes and Regulatory Duties

Inform us of any unique transactions or agreements made during the year. It is crucial to ensure that VAT, employer's National Insurance contributions, and other taxes are paid on time. Most importantly: ensure that all tax withholdings related to salaries are transferred to the dedicated tax withholding account (skattetrekkskonto) before December 31.

6. Clarification of Unresolved Financial Matters

Review any open contracts, outstanding debt, or other unresolved financial issues. Please keep us informed of any future obligations, guarantees, or planned restructurings that may impact the financial statements.

7. Internal Processes and Control Routines

Ensure that the company's internal routines for documentation and approval of financial transactions have been followed throughout the year. If you identify a need to improve your internal control systems, MPR Advisory is more than happy to assist you in optimizing these routines.

8. Beneficial Owners (UBO)

If there have been any changes in the company's ownership structure, information regarding beneficial owners must be updated and reported to your accountant in accordance with the Anti-Money Laundering Act. Verify that all registered information regarding control and ownership is current.

9. Future Commitments and Planned Investments

If you have planned investments, new loans, or changes that will affect next year's accounts, these should be discussed with your accountant now to ensure they are correctly reflected in the reporting.

10. Budgeting for the Upcoming Year

Now is the time to begin preparing the budget for the coming year. We can help you review your projections and make necessary adjustments to ensure your financial goals are realistic and supported by data.

11. Audit Requirements and External Audits

If your company is subject to an audit, ensure that all necessary information is prepared for the auditor well in advance. Maintaining a continuous dialogue with MPR Audit is the best starting point to ensure that the audit process begins on time and meets all legal deadlines.