Can I close the books if not all invoices are in yet?

The short answer

Yes, with adequate support for costs and obligations. The date an invoice is received does not alone determine which year costs belong to.

Basis: art. 2:384(2) and 2:395a(3) DCC

Which obligations already exist at the balance sheet date?

Annual accounts can be prepared before every invoice has physically been received. You must, however, assess which services and obligations belong to the financial year. A supplier who invoices in January for work done in December can therefore be relevant for the year-end. Waiting for the invoice is not always the only correct treatment.

Make an overview of services and goods delivered for which no invoice has yet been booked. Use contracts, order confirmations, timesheets and correspondence to support the amount. Think of the accountant, energy, hired labour and maintenance. Distinguish between services actually delivered and costs planned solely for the following year. A future wish is not an existing liability. Also check whether amounts have already been processed through another account. Without this check, the same cost can end up both in an accrual and in an invoice received later.

How do you estimate missing invoices?

Art. 2:384(2) DCC is relevant for obligations that originate before the end of the financial year and become known before preparation. The applicable policies and any simplifications determine the concrete treatment. The micro regime, for example, has a specific option around certain accruals; do not apply it silently or selectively. Record the treatment chosen and be consistent. For a known amount for services received, an amount-payable item may be appropriate. With greater uncertainty, it must be assessed whether another category or a note is needed.

Treat VAT separately. An estimated cost item does not automatically mean that the VAT may already be deducted as input VAT. The Belastingdienst (the Dutch Tax Administration) sets requirements for deduction, including in principle possession of a suitable invoice and use for taxable activities. Check the specific situation and any exceptions. Where possible, ask the supplier for a specification or a timely invoice. For an estimate, explain which amounts were used including or excluding VAT. That prevents the annual accounts calculation and the VAT return from unnoticeably resting on different, unsupported assumptions.

When do you process the VAT?

After receiving the invoice, check whether the estimate fits and release the item previously recorded against the correct cost treatment. Differences may need additional assessment, certainly if they are material or give information about the situation at the balance sheet date. Keep a list of open estimates with a responsible person and a check date. That shows which items must still be followed up later. Do not close a financial year with arbitrary round amounts just to finish quickly. A supported estimate can be usable; an unexplained balancing item makes the file harder to assess and increases the chance of double costs.

Sources

• Belastingdienst: setting up records
• Belastingdienst: which VAT is deductible?

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