We wish you happy holidays and a prosperous New Year! Thank you for the pleasant collaboration over the past year. At Practical | Excellence in Finance, we are not only reflecting on a successful 2024 but also looking ahead to 2025. Our goal for the coming year is to provide you with management information and an accurate financial statement even faster, ensuring you are well-prepared for the future.
To create your financial statement, it is essential to pay extra attention to your administration in the coming weeks. The sooner we have everything complete, the sooner we can begin. Below, you will find how we can achieve this together. Be sure to schedule an online appointment with your contact person in December or early January. This can be done quickly and easily via this link and is an important first step that can ensure you receive your financial statement before March 1st.
Why a proper year-end closing is essential
A good year-end closing is more than just finalizing the books; it lays the foundation for a strong financial year. It provides insight into your performance, helps identify areas for improvement, and ensures an accurate tax return. Additionally, a thorough closing prevents errors and unexpected surprises in the new year.
We frequently notice that documents, such as those needed for a mortgage application, business acquisition, or other important events, are often required at the last minute. This results in unnecessary urgency and pressure, which benefits no one. To avoid this, we have created a schedule for all our clients based on the past year and your stated preferences.
Important steps for December: getting a head start
Schedule an online meeting with your accountant or contact person to review your administration. This meeting typically takes about half an hour and ensures that you understand what we need from you, what you can expect from us, and what is required for your financial statement. Use this link to schedule your appointment.
- Review your administration and, if applicable, specify balance sheet items such as loans, provisions, or lease obligations.
- Check and process your records: Make sure all invoices and payments have been fully recorded. You can find these in the key points section of your administration.
- Update your debtor and creditor lists or request your contact person to do so and send you an overview. This prevents surprises in January, especially concerning VAT, and ensures that we have a complete administration.
- Perform a physical inventory count if applicable during the last week of the year or the first week of the new year. Also, record any depreciation and notify our staff. This avoids delays later in the process.
- Pay special attention to company cars. The Dutch Tax Authorities monitor private use through checks at borders, amusement parks, and hardware stores, creating a database to compare with payroll records. Incorrect records can lead to significant fines. Verify the accuracy of company car data in your payroll administration.
January: finalization and preparation
- Upload all remaining receipts for 2024 in the first week of January. This allows you more time as your business picks up while enabling us to start with your VAT return.
- Send credit card statements as soon as possible and recheck key points to ensure completeness.
- If needed, schedule an appointment in the first week of the new year via this link. During this meeting, we can inform you of any missing items and create a clear timeline for when you would like to receive your financial statement. Note: We can produce your financial statement relatively quickly, but it will initially be a draft. Corporate and income tax filings for our clients can only begin after March 1st.
- Check the provisional tax assessment: If your profit in 2024 turned out to be higher (or lower) than expected, or if you are unsure whether the provisional tax assessment is sufficient, contact our tax advisors via this link to have your exact situation reviewed. You can also call our team or schedule an appointment with your contact person to go through the administration and ensure everything is correctly aligned for the tax return. Additionally, you can inquire about when the annual accounts will be ready and how to expedite the process. If you have not paid or underpaid your taxes by July 1, 2025, you will be charged additional interest (9% corporate tax and 6.5% income tax) if the provisional/final assessment is not issued by that date. It is crucial to ensure that corporate and income taxes are paid before this deadline. Check carefully whether, based on the current profit (in your administration), you have paid sufficient taxes in advance—also known as the provisional tax assessment.
- Submit your annual summaries on time! Ensure you provide your annual summaries from your bank, pension provider, and insurer promptly, so we can support you optimally with your financial reporting and tax return.
Our three locations in Amsterdam, Rotterdam, and Eindhoven are ready daily to provide entrepreneurs with real-time information. Check out our client cases to see how we help entrepreneurs with their administration and strategy.
More information?
Are you curious how Practical | Excellence in Finance can help you with a quick year-end closing or better insight into your administration? Request a free quote and discover the benefits for your business. With our expertise in bookkeeping, tax advice, financial advice, and payroll administration, we provide proactive advice and tailor-made solutions.
Or would you like to know how Practical can help you better organize your administration and offer proactive financial advice? Request a free quote and discover what we can do for your business. Together, we ensure you are ready for the future! Contact us today and experience the benefits of our customized solutions for your company.
