Closing a company's books for the year: what to do and when
The order of a limited company's or partnership's annual close, from the audit and shareholders' meeting to PND 50 and filing with DBD.
Every limited company and juristic partnership must close its financial statements every year, even in a year with no revenue. The job has several steps, each with its own deadline.
Main steps
- Close the books and prepare financial statements — reconcile bank, receivables, payables, inventory and assets.
- Have a certified auditor audit and give an opinion (some small partnerships may use a tax auditor).
- Hold the shareholders' meeting to approve the statements within 4 months of the year end.
- File the statements with the Department of Business Development (DBD) within 1 month of the approval meeting.
- File PND 50 within 150 days of the year end.
Don't forget PND 51
During the year, companies file PND 51 with a half-year profit estimate and pay tax in advance within 2 months of the half-year end. Underestimating too much brings a surcharge.
Keeping the close smooth
- Keep the books up to date every month, not just at year end
- Count inventory on the actual year-end date
- Keep personal expenses out of the business
exaccounting's monthly plans for companies already include the year-end close, PND 50/51 and DBD filing (auditor fees not included). See the pricing page for details.
Want our accountants to look at this for you?
Add us on LINE and tell us about your business. Our assistant will ask a few basics before passing you to an accountant.
