Procedure for Closing Accounting Books According to the Latest Regulations in Circular 24/2024/TT-BTC Applicable from 2025.
What is Closing Accounting Books?
Based on Clause 8, Article 6 of Circular 24/2024/TT-BTC, closing accounting books is the process of summing up the books to calculate the total amount incurred on the Debit side, Credit side, and the ending balance of each accounting account, or the total revenue, expenditure, fund balance, entry, exit, and inventory during the period.
The unit is not allowed to change information or data in the accounting books after the accounting books have been closed, and financial statements, settlement reports have been submitted to the competent authority.
If it is necessary to adjust accounting data, it shall be carried out according to the provisions of Article 7 of Circular 24/2024/TT-BTC.
Procedure for closing accounting books as per the latest regulations in Circular 24/2024/TT-BTC effective from 2025 (Image from the Internet)
Procedure for Closing Accounting Books as per the Latest Regulations in Circular 24/2024/TT-BTC Effective from 2025
The procedure for closing accounting books as per the latest regulations in point b, Clause 8, Article 6 of Circular 24/2024/TT-BTC is as follows:
Step 1: Check and reconcile information and data before closing the accounting books
- At the end of the accounting period, after recording all accounting vouchers incurred during the period into the accounting books, processing year-end adjustments, accounting must reconcile the recorded data, including reconciling the cash data, inventory data, fixed asset data, balances of receivables, payables, and other accounting data with related parties and documents to ensure consistency and accuracy.
- For Detailed Cash Accounting Books, when closing the books, it is necessary to reconcile with the Cash Fund Records and actual cash on hand at the unit to ensure accuracy and consistency.
Particularly on the last day of the month, if the unit has a cash fund balance, it must make a Cash Fund Inventory Table based on the actual inventory, which must be stored along with the Detailed Cash Accounting Book on the last day of the month.
- For Bank, Treasury Deposit Books, when closing the books, it is necessary to reconcile data for each deposit account of the unit with banks and the state treasury to ensure accuracy and consistency.
The certification of data reconciliation with banks and the state treasury (with signatures and seals of the banks, state treasury) must be stored along with the Bank, Treasury Deposit Books monthly.
- Summarize the Debit transactions, Credit transactions of all accounts on the general ledger and detailed accounting books/cards. Prepare a Summary of Detailed Accounting Books for accounts requiring multiple detailed books.
Then continue to reconcile data on the general ledger with data on detailed accounting books/cards or the Summary of Detailed Accounting Books to ensure data accuracy.
- After ensuring accuracy, the unit proceeds to close the accounting books. In case of discrepancies, the cause must be identified and the discrepancy must be handled until everything matches.
Step 2: Closing the Accounting Books
- Before closing the fiscal year's accounting books, the unit must check whether there are any retroactive adjustments or applications within the year. If so, the beginning balance of the year must be recalculated.
- When closing the books, the accounting books must show the following information:
+ Beginning balance: Must reflect the balance carried forward from the previous period. For the beginning balance of the year, it must reflect the balance carried forward from the previous year; the total adjusted retroactive, applied retroactive, and the beginning balance of the year after the retroactive adjustment, application (if any);
+ Total transactions during the closing period;
+ Ending balance (calculated based on the beginning balance of the year after retroactive adjustment, application);
+ Total accumulated transactions from the beginning of the year to the closing date;
The ending balance is calculated as follows:
| Ending Debit Balance | = | Beginning Debit Balance | + | Debit Transactions during the period | - | Credit Transactions during the period || --- | --- | --- | --- | --- | --- | --- || Ending Credit Balance | = | Beginning Credit Balance | + | Credit Transactions during the period | - | Debit Transactions during the period |
When closing the accounting books, the chief accountant or the person in charge of accounting of the accounting unit must check to ensure the accuracy and balance of the information and data recorded in the accounting unit's books to form the basis for preparing financial statements, and activity settlement reports as per the regulations of Circular 24/2024/TT-BTC.
The person performing the accounting tasks of the dependent accounting unit must check the closing data to ensure accurate information and data are provided to the accounting unit.
- In case the unit keeps manual records, in addition to following the above closing steps, when closing the books, a horizontal line must be drawn below the last transaction row of the accounting period.
After calculating the balance of each account, accounts with a Debit balance are recorded in the Debit column, and accounts with a Credit balance are recorded in the Credit column. Finally, two parallel lines are drawn to complete the book closure.
When Does Circular 24/2024/TT-BTC Take Effect?
According to the provisions of Article 13 of Circular 24/2024/TT-BTC, the regulations are as follows:
Effectiveness
1. This Circular takes effect from January 01, 2025, and applies from the financial year 2025.
2. The following Circulars cease to be effective from the date this Circular takes effect
...
3. Documents referenced by this Circular with supplements, amendments, replacements shall follow the new documents in effect.
Thus, according to the above regulations, Circular 24 takes effect from January 01, 2025, and applies from the financial year 2025.
*Note: Documents referenced by Circular 24/2024/TT-BTC with supplements, amendments, replacements shall follow the new documents in effect.
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