Year-End Closing Checklist for Businesses in Albania

Albania’s financial year runs from 1 January to 31 December. What you do in the last weeks of December shows up in your financial statements, your annual return and the tax you pay. This checklist helps you close the year without surprises.

1. Count your inventory

Accounting Law No. 25/2018 requires that, at least once in each reporting period, the existence and value of assets, liabilities and equity are checked through a stock-take. The company’s management is responsible for it.

• Count the goods in your warehouse and compare them with the books.
• Identify damaged, expired or slow-moving stock.
• Check fixed assets: do they exist, are they in use, have any been sold or retired?
• Record the count in a signed report.

2. Reconcile bank and cash

• Match each bank account’s 31 December balance to the bank statement.
• Count the cash box and record it in a report.
• Resolve any payment or receipt without a supporting document.

3. Confirm customer and supplier balances

• Send balance confirmations to your main customers and suppliers.
• Review old receivables. A bad debt is tax-deductible only when it meets the conditions of Article 53 of the Income Tax Law, so discuss it with your accountant before closing.

4. Check your invoices

• Make sure every sale of the year is fiscalised and recorded.
• Accept or reject any pending purchase e-invoices in the system.
• Collect December’s expense invoices before you close the books. An expense without a proper invoice isn’t deductible.

5. Pay the last corporate tax instalment

The quarterly instalment for October, November and December is due by 31 December (Article 63 of Law No. 29/2023). If you pay monthly, December’s instalment is due by the 15th.

6. Close the year’s payroll

• Check that December salaries, year-end bonuses and contributions are reported correctly.
• Update your employee list, contracts and unused leave.

7. Get ready for the 2027 changes

From 1 January 2027, the VAT registration threshold falls to ALL 5 million. Check your turnover now. Read who must register for VAT from 2027 and what else the 2027 fiscal package changes.

8. Note next year’s deadlines

Deadline	Obligation
31 March 2027	Annual corporate income tax return and financial statements
31 March 2027	Annual personal income tax return, where required
31 July 2027	Filing financial statements with the QKB

Our guides: the annual corporate income tax return and the annual personal income tax return.

What to send your accountant in January

• December bank statements and 31 December balances
• Stock-take and cash-count reports
• Customer and supplier balance confirmations
• The last sales and purchase invoices
• New contracts, loans, and changes in ownership or assets

Close the year with Abacus

We handle year-end closing, financial statements and annual returns for small and medium-sized businesses. Contact us in December, or explore our accounting services.

This article is for general information and is not a substitute for professional advice. Sources: Accounting Law No. 25/2018 (Articles 9, 15); Income Tax Law No. 29/2023 (Articles 53, 61, 63); VKM No. 822 of 28.10.2026.