The glossary to understand and take action

Accounting close

The accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

It includes, in particular, reconciliations, inventory, valuations and the allocation of transactions to the appropriate period. Closing, approval by the competent bodies and filing are three distinct stages.

In your file

What this changes in practice

The close delimits the transactions of the financial year and prepares the annual accounts. It includes, in particular, the review of balances, inventories, fixed assets and expenses or income to be allocated to the period. A sound close begins before the final day of the financial year with a schedule for supporting documents and approvals. The accounting close is distinct from the approval of the accounts, their filing and the tax return.

A scenario to help you understand

Educational example

An invoice received in January relates to a service provided in December. The company examines its allocation to the relevant financial year rather than relying solely on the date of receipt or payment.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Communiquer les opérations proches de la clôture
  • Justifier les soldes et estimations
  • Distinguer clôture, approbation, dépôt et fiscalité

The practical question

Find out more

Que remettre au cabinet pour préparer la clôture ?

Outre les factures et relevés, préparez les informations qui ne ressortent pas seules des écritures : stocks, litiges, immobilisations, opérations proches de la date de clôture et engagements importants. Signalez les événements inhabituels. Un dossier de clôture organisé explique les soldes et les estimations, ce qui réduit les demandes tardives et les corrections fondées sur des informations incomplètes.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Cut-offPrinciple requiring expenses and income to be allocated to the financial year to which they relate, independently of payment alone.Annual accountsAnnual accounts present the entity’s financial position and result at the end of a financial year, together with the documents required under its regime.Financial yearThe financial year is the period over which a company prepares its accounts and determines its result.Accounting reviewAccounting review consists of all checks aimed at examining the consistency and supporting evidence of the prepared accounts.Bank reconciliationA check that explains differences between the transactions and balances of a bank account and those recorded in the accounts.Physical inventoryAn operation to verify and count assets on a given date, with identified references, units and persons responsible.

Put it into practice

Explore further with our guides

Practical guideBusiness cash flow: anticipating pressures and deciding in timePractical guideAccounting obligations of an SARL in Luxembourg: organising compliancePractical guideAccounting close: preparing the year-end filePractical guideInventory of stocks: count, reconcile and value

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.