The glossary to understand and take action

Accounting

Accounting organises the recording of transactions and the production of information on the company’s financial position and results.

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

Understand the scope

Definition and points to distinguish

It relies on supporting documents and rules for classification and valuation. A bank statement is not enough to identify all receivables, liabilities and expenses for a period.

In your file

What this changes in practice

Accounting turns documented transactions into information tracked over time. It is used to prepare accounts, but also to understand receipts, liabilities, expenses and margins. A reliable organisation links each transaction to a supporting document, provides for reconciliations and addresses anomalies without waiting for year-end. Exact obligations vary depending on the entity; a cash-flow statement, while useful for management, does not automatically replace compliant accounting.

A scenario to help you understand

Educational example

A director looks at the bank account and believes they know the company's profit. Accounting also includes unpaid invoices, depreciation and the matching of expenses, which may substantially change that view.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Définir une fréquence de traitement
  • Conserver une piste entre pièces et écritures
  • Rapprocher régulièrement banques, clients et fournisseurs

The practical question

Find out more

Pourquoi tenir les comptes régulièrement plutôt qu’une fois par an ?

Une tenue régulière permet de repérer les factures manquantes, retards clients et écarts bancaires pendant qu’ils peuvent être expliqués. Elle facilite aussi les déclarations et le pilotage. Les comptes annuels restent nécessaires, mais ils ne remplacent pas une information de gestion suffisamment récente pour suivre la trésorerie et prendre des décisions au cours de l’année.

Connecting concepts

Terms to know as well

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

BookkeepingBookkeeping consists of recording transactions, filing their supporting documents and monitoring accounts according to a regular organisation.Balance sheetThe balance sheet presents, at a given date, the company's assets and the resources or obligations financing them.Income statementThe income statement, also called the profit and loss account in Luxembourg accounts, matches income and expenses for a period.AccountantThe accountant records and monitors transactions, reconciles supporting documents and prepares financial information within the scope of their duties.Accounting closeThe accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.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.

Put it into practice

Explore further with our guides

Practical guideAccounting obligations of an SARL in Luxembourg: organising compliance

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.