Steps for Closing Accounts
We have listed the steps that apply to most companies when it is necessary to close accounts:
1. Inventory Verification
It is necessary to confirm that the existing products/services fusion database the company's accounting data. Controlling and managing stock is very important to find a balance between the investment made in goods and consumables and actual sales.
2. Confirmation of Fixed Assets
All asset acquisition or disposal operations must be verified, in particular, ensuring that all movements are recorded in the accounting records and that the reintegration/depreciation maps and the files for each asset are up to date and in legal compliance.
3. Bank Reconciliation
For the correct closing of accounts, bank reconciliation tables must be prepared to indicate any differences between the accounting balance and the bank balance. Other accounts, financial investments or credit/financing transactions must also be checked:
Current and term accounts;
Financial applications;
Credits (confirm with Banco de Portugal);
Loans/escrow accounts;
Promissory notes/leasing contracts;
Credit cards.
4. Customer and Supplier Conference
In the account closing process, it is necessary to check that all amounts invoiced to customers/suppliers and received by the company are correct:
invoices issued duly registered and for the correct amount;
signed and registered credit notes;
registered debit notes;
billing program data matching accounting records;
VAT duly paid;
VAT-exempt transactions correctly classified under existing legislation.
5. Personal Account Verification
At this point, it is essential to check the record of salary processing carried out and the respective payment of remuneration.
6. Account Validation Status
This involves analyzing the different tax headings and checking the payments made, namely:
VAT;
IRC calculation;
IRS/IRC Source Withholdings;
Social Security;
Other Taxes (IMI/IUC/FCT).
7. Control of Accruals and Deferrals
It is necessary to check and verify that all movements that were carried over from the previous year or that will be carried over to the following year are recorded (operations related to cost increases, income, income deferrals, costs, including state subsidies for tangible fixed assets).
8. Control of Remuneration to be Settled
At this point, it is necessary to regularize the entries made in relation to the payment of vacations, vacation allowance and charges, relating to the company's employees.
