{"id":4196,"date":"2026-10-07T12:30:38","date_gmt":"2026-10-07T10:30:38","guid":{"rendered":"https:\/\/pkf.hu\/?p=4196"},"modified":"2026-10-07T12:30:38","modified_gmt":"2026-10-07T10:30:38","slug":"year-end-closing-and-accounting","status":"publish","type":"post","link":"https:\/\/pkf.hu\/en\/2026\/10\/07\/year-end-closing-and-accounting\/","title":{"rendered":"Year-end closing and accounting: What should company managers prepare for?"},"content":{"rendered":"

An accountant can provide an accurate picture of a company\u2019s performance and financial position for the year if the documents, business information and management decisions required for the year-end closing are made available on time.<\/strong><\/p>\n

With a few simple steps, management can help ensure that the year-end closing runs smoothly<\/strong> and that there are no unresolved items when the financial statements are prepared.<\/p>\n

Providing missing documents<\/h2>\n

Before the year-end closing, it is worth checking that all invoices, bank and cash documents, certificates of completion, documents relating to advance payments and other supporting documents<\/strong> relating to the financial year have been submitted to the accounting team.<\/p>\n

It is particularly important to notify the accountant of transactions that were completed by year-end but for which the invoice will only arrive later. The same applies to year-end bonuses, commissions, service fees<\/strong> and other liabilities that relate to the financial year but have not yet been invoiced.<\/p>\n

Reviewing contracts and agreements can also be useful, as these may indicate financial obligations relating to the year-end or the following period.<\/p>\n

Reconciling receivables and payables<\/h2>\n

Before the closing process, it is advisable to review outstanding receivables and payables, particularly balances that have remained unsettled for a longer period.<\/strong><\/p>\n

The accountant should be informed, for example, if the collection of a receivable has become uncertain, a customer disputes an invoice, or the amount, legal basis or settlement of a supplier liability has not yet been clarified. Such matters may have accounting implications when preparing the financial statements, including the potential need to recognise an impairment loss.<\/p>\n

Preparing for the inventory count<\/h2>\n

The balances of assets and liabilities presented in the financial statements must be supported by an appropriate inventory record. The Hungarian Accounting Act (Act C of 2000)<\/a> sets out detailed requirements concerning inventory procedures and accounting records.<\/p>\n

Management should therefore agree on the inventory process in advance and inform the accounting team if, for example, there are damaged or unused assets, items awaiting disposal, assets stored at another site or at a third party\u2019s premises, or discrepancies in inventory.<\/strong><\/p>\n

For fixed assets, it is also worth checking whether assets purchased, sold or placed into service during the year are properly reflected in the accounting records.<\/p>\n

Reviewing items affecting the year-end cut-off<\/h2>\n

When closing the accounts, the decisive factor is not always when an invoice was issued or paid. It is also necessary to determine which financial year the relevant income or expense relates to.<\/strong><\/p>\n

Management should therefore notify the accounting team in advance of, for example, prepaid rent or insurance premiums, services covering multiple periods, work completed by year-end but invoiced later, as well as income received in advance or not yet invoiced.<\/p>\n

The appropriate accounting treatment is determined by the accounting team based on contracts, completion information and other supporting documents. Management\u2019s key responsibility is therefore to provide timely information about these transactions.<\/p>\n

Reporting significant liabilities and risks<\/h2>\n

Preparing the financial statements requires more than information about transactions that have already been recorded in the accounts. Management should also inform the accountant of significant events and circumstances that may affect the company\u2019s financial position.<\/strong><\/p>\n

These may include an ongoing or anticipated legal dispute, warranty obligations, significant contractual commitments, damage or loss events, or other agreements that could result in a payment obligation for the company.<\/p>\n

Such matters do not necessarily appear automatically in the accounting records. The accountant can therefore only assess their appropriate accounting treatment if the necessary business information is available.<\/p>\n

Agreeing on the closing schedule in advance<\/h2>\n

The closing process can be significantly easier if management and the accounting team agree on responsibilities and deadlines in advance. It is worth establishing when missing documents must be submitted, who is responsible for collecting specific information, and when the accounting records are expected to be closed and the financial statements prepared.<\/p>\n