The end of the financial year opens a busy period for every company. Within a few months, the accounts must be closed, the financial statements prepared, the tax return filed, the shareholders convened to approve the accounts, and the filing formalities completed.
These steps follow a precise order. A delay in one of them can hold up the next.
1. Close the financial year
Closing means finalising the year’s bookkeeping and recording the year-end adjustments: inventory, depreciation, provisions, accruals and prepayments.
This is the step on which the reliability of everything else depends. It assumes the books have been kept regularly throughout the year, with supporting documents filed and bank accounts reconciled.
2. Prepare the financial statements
Annual accounts are presented under the Moroccan General Accounting Standards Code (CGNC). Under the standard model, the financial statements comprise:
- the balance sheet;
- the income statement (CPC);
- the statement of management balances (ESG);
- the funds flow statement;
- the notes to the accounts (ETIC).
Companies that meet the conditions may use the lighter simplified model.
3. File the tax return
For companies subject to corporate income tax, the return showing the taxable result, together with the financial statements, must be filed within three months of the year-end.
A point often misunderstood: the tax return comes before the meeting that approves the accounts. The accounts must therefore be finalised soon after year-end, without waiting for the shareholders’ meeting.
This is also when the balance of tax due is calculated, after deducting the instalments paid during the year, and when next year’s instalments are determined.
4. Hold the approval general meeting
The accounts must be submitted to the ordinary general meeting of shareholders within six months of the year-end, for SARLs and SAs alike.
The manager presents the accounts and, depending on the company’s form, a management report. Where the company has a statutory auditor, the auditor’s report is also presented.
The meeting:
- approves (or rejects) the accounts;
- decides on the allocation of the result: reserves, retained earnings or dividends;
- where applicable, grants discharge to the manager.
The decisions are recorded in minutes.
5. File the accounts with the court registry
After the meeting, the approved accounts and accompanying documents must be filed with the registry of the commercial court, within the legal time limits. This filing makes the accounts available to third parties and is part of the company’s transparency obligations.
The timeline at a glance
For a company whose financial year matches the calendar year:
| Step | Indicative deadline |
|---|---|
| Year-end closing | 31 December |
| Tax return and financial statements | Within 3 months of year-end |
| Approval general meeting | Within 6 months of year-end |
| Filing of accounts with the registry | Within the legal time limits after the meeting |
Costly mistakes
- Waiting for the meeting to finalise the accounts, when the tax return comes first.
- Forgetting to hold the meeting, or not drafting the minutes: the accounts are then not formally approved.
- Paying dividends without a shareholders’ decision or without distributable profits.
- Neglecting the registry filing, which can cause problems when applying for financing, bidding for a tender or selling the business.
In short
Approving the accounts is not just an administrative formality: it is when shareholders review the results and decide what happens to the profits. Well prepared, it becomes a genuine management milestone.
Ascensu handles the approval and filing of annual accounts: closing the accounts, preparing the meeting documents, drafting the minutes and completing the filing formalities.
Official sources
This article is provided for general information, as at its publication date. It is not personalised advice: the rules change and every situation must be reviewed on its own facts.