The Accounting Period in 2026: Duration, Closing and 9 Steps

Updated 12 May 2026. A French accounting period runs for 12 months by default (Article L123-12 of the Commercial Code). Closing it triggers a structured nine-step protocol, a tight filing calendar and a registry filing whose default is sanctioned at €1,500 per company (Article R247-3 of the Commercial Code). For a SAS or SARL director in Paris, the question is no longer simply how to "close the books": it is how to turn the closing into a management lever — by arbitrating the closing date intelligently, securing the cut-off and respecting tax deadlines. Here is what the 2026 framework requires, and how Cabinet Hayot Expertise structures the sequence for its clients.

Article L123-12 of the Commercial Code and 12-month duration#

Article L123-12 of the Commercial Code sets two inseparable obligations: chronologically record all movements affecting the company's assets, and conduct an inventory at least once every twelve months. This text establishes the accounting period as the reference time frame: 12 consecutive months, at the end of which Article L123-13 imposes the preparation of annual accounts (balance sheet, profit and loss account, notes). The opening and closing dates are set out in the articles of association. The continuous, chronological nature of bookkeeping (Article L123-12 first paragraph) prohibits any retroactive entry outside duly documented error corrections.

First and last exercise — specific rules#

The first exercise can depart from the standard duration: between 3 and 24 months, depending on the date of incorporation and the statutory closing date. A SAS incorporated on 15 March 2026 with a statutory closing on 31 December will close its first exercise after about 9.5 months; if the same company chooses a 31 March closing, it can stretch its first exercise to 24 months to obtain a first meaningful period of activity. The last exercise — in the event of dissolution, merger or full disposal — can equally be shortened (early closing) or extended up to 18 months where the operation is deferred. These statutory flexibilities are documented through a shareholder resolution and an amendment to the articles.

Changing the closing date — procedure#

Modifying the closing date during a company's life is possible but strictly framed. BOFiP doctrine permits only one such change per cycle of roughly 5 years, and the transition takes the form of a single exercise of between 6 and 18 months (Article L123-12 by extension). The procedure requires an extraordinary general meeting resolution (statutory amendment), a filing on the National Companies Register via the INPI one-stop window (around €250 in fees) and a publication in a legal gazette. The decision must be taken before the contemplated new closing date: a retroactive change is not enforceable against the tax authority.

Why 90% of SMEs close on 31 December#

The 31 December reflex is driven by alignment with the calendar year: tax exercise and corporate exercise coincide, corporate-tax instalments follow a natural calendar rhythm, and sector benchmarks are easier to read. For most Paris-based SMEs — service companies, patrimonial holdings, professional partnerships — 31 December remains the path of least friction. But this default choice is not neutral: it concentrates every closing into the same period, saturates accounting firms in March and April, and forces a physical inventory during the holiday season for trading businesses.

Sector cases — restaurants, hospitality, education#

Some sectors benefit from closing outside the calendar year. A restaurant usefully closes on 30 June: the low season neutralises year-end peaks, the inventory is simpler to conduct, and teams are available. A hotel or seasonal tourism operator targets 30 September, after the summer high season, giving a readable cycle-by-cycle profit and loss. A training or education provider picks 31 August to align with the academic year. Publishing frequently closes on 31 March or 30 June to integrate the autumn literary season within a single exercise. The wine sector targets 31 August, after harvest and before bottling. In each case, the closing date is a management decision, not a formality.

Impact on tax filings and corporate-tax instalments#

The closing-date choice shifts the tax return but not the corporate-tax instalments. For a 31 December closing, the tax return must be filed by the second working day following 1 May of year N+1 — roughly 5 May 2027 for the 2026 accounts — with an additional 15 days under e-filing. For any other closing date, the return is filed within 3 months following the closing. Corporate-tax instalments (Article 1668 of the General Tax Code), however, remain fixed on 15 March, 15 June, 15 September and 15 December, whatever the closing date: a company closing on 30 June therefore pays calendar instalments unrelated to its actual closing cycle.

Cut-off, accrued expenses, accrued income, prepaid expenses and deferred income#

The principle of independence of exercises (Article 313-1 of ANC Regulation 2014-03, the French Chart of Accounts) requires strict matching of expenses and income to the exercise that generated them. In practice, closing mobilises five cut-off entries: accrued expenses (FNP, account 408) for goods and services consumed but not yet invoiced; accrued income (FAE, account 418) for sales realised but not yet invoiced; prepaid expenses (CCA, account 486) for charges recorded but relating to the following exercise; deferred income (PCA, account 487), the symmetrical revenue counterpart; and attachable social charges — accrued unpaid interest, paid-leave accruals from year N to be paid in N+1, depreciation entries through account 681. The density of these entries directly conditions the reliability of profit and exposes the company, if mishandled, to a tax reassessment under Article 39 of the General Tax Code.

Physical inventory of stocks and valuation#

Article L123-12 requires an annual physical inventory. For accrual-basis businesses with stocks (trading, manufacturing, construction), the count is conducted at the closing date or at a date close to it, corrected for subsequent movements. Valuation follows the weighted average cost (CMUP) or FIFO method — LIFO is not permitted in France. The accounts involved are 31 (raw materials), 33 (work in progress on goods), 34 (work in progress on services), 35 (finished goods) and 37 (merchandise). Abnormal losses (breakage, theft, expiry) must be provisioned: failure to do so exposes the company to a reassessment, as the administration treats inventory as an asset at fair-value-in-use.

Impairment, provisions, end-of-career benefits#

Three families of entries secure the true-and-fair view. Asset impairment: doubtful customer receivables (account 491) tax-deductible where risk is precisely identified (Article 39 1° 5° of the General Tax Code), unsaleable stocks, depreciated investment securities. Provisions for liabilities and charges (class 15): litigation (1511), customer warranty (1512), major maintenance (1572), pensions and similar obligations. End-of-career indemnities (ICR, account 1531) calculated under the projected unit credit method (recommended by IAS 19); in simplified method, in the absence of an actuarial valuation, the commitment must still be disclosed in the notes. Long-service medals (1534) and time-off accounts (CET) complete this family. An under-valued provision weakens liabilities; an over-valued provision is not tax-deductible.

Straight-line vs declining-balance calculation (Article 39 A of the General Tax Code)#

Straight-line depreciation is the default rule: the depreciable base is spread evenly over the useful life. Declining-balance depreciation, provided by Article 39 A of the General Tax Code, accelerates the deduction over the first years through a multiplier coefficient (1.25, 1.75 or 2.25 depending on useful life). Our detailed analysis is in the article Declining-balance depreciation. The annual entry is uniform: a charge to account 681 against the relevant 28X account. Useful life is determined by reference to Article 214-13 of the Chart of Accounts and to professional usage acknowledged by the administration (BOI-BIC-AMT).

Component-based depreciation plan#

Since 2005, the Chart of Accounts has required fixed assets to be broken down into components where these have a useful life distinct from the main structure. A building is broken down into shell (50 years), roof (25 years), facade (30 years), heating (20 years), lift (15 years). A vehicle can be broken down into body and tyres. This breakdown gives rise to distinct depreciation charges, more faithful to the actual consumption of each component. Failure to break down significant assets (typically above €500,000 gross value) constitutes an accounting irregularity that may be flagged by the statutory auditor or the tax administration.

Derogatory depreciation#

When the tax-deductible depreciation period is shorter than the economic useful life, the gap is recorded in a derogatory depreciation account (145), classified as regulated provisions on the liability side. Account 145 captures the difference between tax-deductible depreciation (often declining-balance) and economic depreciation (straight-line). On disposal, account 145 is released to profit. This technique preserves the economic readability of the profit and loss account while optimising the tax base — a recurring topic in our bookkeeping and review engagements in Paris.

Balance sheet, profit and loss, notes#

The annual accounts required by Article L123-13 of the Commercial Code comprise three deliverables. The balance sheet presents the patrimonial situation at closing (fixed assets, current assets, shareholders' equity, liabilities). The profit and loss account presents the activity of the exercise (expenses, income, profit). The notes complete and comment on both statements: accounting methods, post-closing events, off-balance-sheet commitments, breakdown of revenue by activity, headcount, related parties. For companies required to prepare consolidated accounts, the scope expands under the rules described in our article Consolidated accounts and IFRS.

Tax return forms 2050-2059 IS, 2031 BIC, 2035 BNC#

The tax return is the standardised format for transmitting the annual accounts to the tax administration. For corporate-tax payers, the 2050-2059 bundle comprises eleven forms (balance sheet asset and liability sides, profit and loss, fixed assets, depreciation, provisions, receivables and payables, losses, capital gains, monitoring schedule, headcount). For businesses under the BIC actual regime (personal income tax, industrial and commercial activity), the 2031 bundle follows a comparable logic, adapted to taxation in the hands of the operator. For BNC (non-commercial professionals — partnerships of liberal professions, etc.), the 2035 bundle describes receipts and expenditures. Micro-entrepreneurs escape the tax bundle as such: their result is declared on form 2042-C-PRO.

Mandatory e-filing via EDI-TDFC or EFI#

Article 1649 quater B quater of the General Tax Code imposes e-filing on corporate-tax payers and, above certain thresholds, on BIC and BNC taxpayers. Two channels exist: EDI-TDFC (Electronic Data Interchange — Tax and Accounting Data Transfer), through an EDI partner or directly via the firm, and EFI (Electronic Form Interchange) accessible from the professional area on impots.gouv.fr. E-filing opens an additional 15-day window on the statutory deadline. A rejected EDI return does not suspend the deadline: any blocking rejection must be resolved immediately to avoid tipping into late filing.

General meeting within 6 months of closing#

Article L232-1 of the Commercial Code requires the annual accounts to be approved by the shareholders' meeting within six months of the closing date. For a 31 December 2026 closing, the meeting must be held no later than 30 June 2027. Approval takes the form of an ordinary general meeting minute, recording the resolutions on the approval of accounts, the discharge of directors, the allocation of profit and, where applicable, dividend distribution. An extension can be requested from the president of the commercial court, but it remains exceptional and must be motivated.

Registry filing within 1 or 2 months of the meeting#

Article L232-23 of the Commercial Code requires the annual accounts to be filed with the commercial court registry within one month of the approval meeting (paper filing) or two months (e-filing via the INPI one-stop window, which is now the reference channel). For a 31 December 2026 closing with a 30 June 2027 meeting, the filing must therefore occur by 31 August 2027 at the latest. Paris registry fees range from €45 to €65 depending on the documents and filing mode. The filing comprises the annual accounts, the management report (subject to the confidentiality option open to small entities), the profit-allocation decision and the statutory auditor's report where applicable.

Late-filing sanctions — €1,500 (Article R247-3 of the Commercial Code)#

Failure to file the annual accounts is sanctioned by Article R247-3 of the Commercial Code: a €1,500 fine, doubled in case of recidivism (€3,000). Where the failure persists, the court president can, at the request of any interested party, order the company to file under a daily penalty of €25 to €200 per day of delay. Tax sanctions stack on the tax-return side: a 10% surcharge on the corporate tax due and 0.2% per month late-payment interest (Articles 1727 and 1728 of the General Tax Code) for a late filing. A spontaneous regularisation — before any formal notice — mitigates the late-payment interest but does not remove the surcharge.

Four calendar instalments under Article 1668 of the General Tax Code#

Article 1668 of the General Tax Code organises corporate-tax payment into four annual instalments, due on 15 March, 15 June, 15 September and 15 December, regardless of the closing date. Each instalment is in principle equal to one quarter of the corporate tax due in the previous exercise (with a surcharge for large companies). Companies closing during the year compute these instalments by reference to the most recent closed exercise known at the due date, which mechanically creates a timing gap that the final settlement catches up.

Final settlement on 15 May N+1 for a 31 December closing#

The corporate-tax balance is due on 15 May N+1 for companies closing on 31 December (deadline aligned with the tax-return filing). For any other closing date, the balance is paid on the 15th of the fourth month following closing: a company closing on 30 June pays its balance on 15 October; a company closing on 30 September on 15 January of the following year. The regularisation is processed via form 2572, and any payment default triggers the late-payment interest of Article 1727 of the General Tax Code from the day after the deadline.

Timing gap by closing date#

A company that changes its closing date encounters a threshold effect on instalments. In practice, during the transition exercise, instalments may exceed the final corporate tax if the exercise is short: an option to reduce instalments (form 2571) helps anticipate the situation, but exposes the company to a 5% surcharge if the amount paid is less than 90% of the final corporate tax. For tax-consolidated groups (Article 223 A of the General Tax Code), aligning exercises is compulsory: a newly acquired subsidiary must align its closing on that of the parent over 12 consecutive months before entering the tax consolidation.

Profit and loss redesign and goodwill treatment#

ANC Regulation 2025-04, in force from 1 January 2026, modifies several presentations of the profit and loss account: reclassification of certain exceptional income, homogeneous treatment of goodwill with systematic amortisation over 10 years (unless a longer useful life is justified), and new disclosures in the notes on employee benefit obligations. These changes apply prospectively and require a documented review of accounting conventions for the first 2026 closing.

CSRD sustainability report for entities above 250 employees#

The Corporate Sustainability Reporting Directive (CSRD) imposes, for the 2026 application wave covering the 2025 exercise, a sustainability report aligned with the ESRS standards for companies above 250 employees and above €50M turnover or €25M total balance sheet. The report is integrated into the management report and subject to assurance by a statutory auditor or an independent third-party body. Detailed analysis is in our article CSRD: who is concerned. For a 2026 closing, the challenge is to structure ESG, social and governance data upstream, since collection mobilises functions beyond accounting alone.

Cut-off and e-invoicing from 1 September 2026#

Mandatory e-invoicing becomes effective on 1 September 2026 for reception by all companies and for issuance by large enterprises and ETIs. SMEs and micro-businesses switch on 1 September 2027. The closing impact is direct: e-invoices are tracked in real time through the platforms (PDP/PPF), which mechanises and improves the reliability of accrued expenses and accrued income at the closing date. Detailed monitoring is in our 2026 e-invoicing guide for SMEs. For closings occurring after September 2026, automatic pre-matching of received invoices reduces the risk of a botched cut-off and the associated reassessment.

The decision to arbitrate — 31 December closing or sector date#

31 December is not always the best date. In the engagements we run in Paris for hotels, restaurants, schools or publishers, switching to a sector closing frees the teams from inventory during the holidays, smooths profit over a full cycle and makes the closing more orderly. Conversely, for a SAS in digital services without strong seasonality or for a patrimonial holding, 31 December remains optimal — notably for dividend arbitrage and IFI filings. The decision is documented in the articles and taken at incorporation or during a restructuring operation.

The under-estimated risk — botched cut-off and tax reassessment#