Year-end expense apportionment

According to accounting standards, expenses should be recorded in the financial year in which they are incurred, regardless of the payment date. Therefore, when closing your company's accounts, do not forget to make the necessary accounting adjustments to comply with this principle.

• Prepaid expenses. It is possible that in the closing financial year, you have accounted for some expenses that should be partially or fully allocated to the following financial year. For example, insurance premiums that cover part of the following year, advance payments for services that you will enjoy during a part of the next year...

• Deferred expenses. It can also happen the other way around: there may be expenses that have already been incurred —and therefore can be accounted for— but are not recorded in the accounts because their payment is not due until the next year. For example, accrued but unpaid bonuses, loan interests or deferrals, the audit fees themselves...