The glossary to understand and take action

Financial year

The financial year is the period over which a company prepares its accounts and determines its result.

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

Understand the scope

Definition and points to distinguish

Its closing date must be identified in the company’s file. The first financial year, a change of date and filing obligations require specific review: do not assume that all companies close their accounts on 31 December.

In your file

What this changes in practice

The financial year is the period used to prepare the company’s accounts. It may differ from the calendar year under the applicable conditions. Its dates structure the year-end closing, performance comparisons and several deadlines. A change of date is not merely a software setting: the decisions, publication obligations and potential tax consequences must be checked.

A scenario to help you understand

Educational example

A company closes its accounts on a date other than in December. Its accounting calendar takes that date into account for inventory, supporting documents and the preparation of accounts.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Confirmer les dates statutaires
  • Adapter le calendrier de clôture
  • Expliquer les périodes non comparables

The practical question

Find out more

Pourquoi signaler un premier exercice de durée inhabituelle ?

Les montants ne se comparent pas directement à ceux d’un exercice de durée différente. La lecture du résultat et des indicateurs doit tenir compte de la période couverte. Les dates déterminent aussi la préparation des comptes et les obligations associées. Indiquez clairement cette particularité aux intervenants pour éviter un calendrier ou une comparaison construits sur une année standard.

Connecting concepts

Terms to know as well

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

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.Cut-offPrinciple requiring expenses and income to be allocated to the financial year to which they relate, independently of payment alone.Tax loss carryforwardA loss determined under tax rules whose deduction in a subsequent period remains possible subject to conditions.SARLAn SARL is a private limited liability company whose organisation and shareholders’ rights are governed by law and the articles of association.ManagerThe manager performs the management and representation functions assigned to them within the company.

Put it into practice

Explore further with our guides

Practical guideSARL in Luxembourg: operation and decisions of the partnersPractical guideCorporate tax return: prepare the documents and monitor filingPractical 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.