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Closure of accounts

Closure of the accounts includes accounting work associated with the closure of the accounts of an entity for the financial year.

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It is the peak of all work associated with the entity’s accounting for a certain period of time. Before drawing up the Financial Statements, all of the account books must be closed as of the last day of the financial year. Closing the books can be broken down into these steps:

1. Preparatory works; these include

a) inventory

b) entering in the past accounting operations at the end of the period

2. Closing the books; including

a) the determination of the profit before tax

b) the calculation of income tax base and entering in the tax obligations

c) closure of the accounts

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