Closing the Financial Year: How to do It in 8 steps.

The article outlines eight steps for closing the financial year for entrepreneurs:

1. Gather All Business Data: Organize all business documents, including receipts, invoices, and travel reports.

2. Process Bank Transactions: Ensure all bank transactions are correctly accounted for and match the balance.

3. Process Invoices: Record income in the year services were provided, regardless of payment date.

4. Accrued Income: Income for December 2024, paid in January 2025, should be recorded in 2024.

5. VAT Return: The invoice date determines the VAT year.

6. Depreciation of Investments: Update the list of depreciable assets.

7. Inventory Valuation: Ensure the actual value of inventory matches the recorded value.

8. Tax Return: Submit the tax return by May 1 and include business travel expenses.