Business accounting and tax in Luxembourg

Support tailored to your business

Well-organised accounts allow you to monitor your business, understand your results and prepare for your accounting and tax obligations.

SQUARREL supports self-employed professionals and small companies in Luxembourg, from the launch of the business through to the preparation of the annual accounts. Support can take the form of ongoing assistance or a one-off engagement, depending on your needs and your existing organisation.

Your file is handled directly by Hadrien Peschon, chartered accountant.

Bookkeeping and review of your accounts

Outsourcing your bookkeeping

The firm records and checks transactions on the basis of the documents you provide: purchase and sales invoices, bank statements and other supporting documents.

The arrangements for sending documents and the frequency of the work are agreed with you, taking into account the volume of activity and the applicable deadlines.

Having accounts you have already prepared reviewed

Do you keep your own accounts or already have preparatory work in place? The firm can review the accounts, identify the corrections needed and prepare the year-end closing.

Filing your documents in order and preparing summary tables makes the work easier. The extent of the review nonetheless depends on the quality of the entries, the supporting documents available and the checks to be carried out.

Year-end closing and annual accounts

The year-end closing makes it possible to check the consistency of the accounts and to determine the profit or loss for the financial year.

Depending on your company's obligations and the agreed scope, the engagement may include:

• reconciling bank accounts and reviewing customer and supplier balances;
• monitoring fixed assets and depreciation;
• reviewing transactions with the director or the shareholders;
• year-end and adjusting entries;
• preparing the annual accounts and the required notes to the accounts;
• the applicable filing formalities, where these are entrusted to the firm.

The accounts are presented to you and the main points requiring attention are explained before they are finalised and before the formalities for which you are responsible are completed.

VAT and tax returns

Your VAT obligations

The firm helps you identify your obligations and prepare the VAT returns relevant to your business.

The work may include, in particular, reviewing the treatment of transactions, input VAT and the consistency between the accounts and the returns, as well as preparing and filing the required periodic and annual returns.

Transactions with foreign customers or suppliers receive particular attention where their treatment requires additional checks.

Taxable profit and tax returns

The accounting profit is the starting point for the tax analysis. Certain income or expenses may require separate tax treatment.

The firm reviews the necessary adjustments and prepares the agreed returns according to your legal structure: the personal tax return of the self-employed professional or the company's tax returns.

The scope specifies the taxes, financial years and formalities covered.

Starting your business or considering a move to a company

Reviewing your legal structure

The choice between a sole proprietorship and a company depends, in particular, on the nature of the project, its prospects, your remuneration needs and the administrative, tax and social security consequences.

The firm helps you compare the relevant options. Setting up a company is not presented as being systematically more advantageous.

Preparing for start-up

Depending on your project, support may include:

• reviewing the main formalities and obligations;
• assistance with incorporating a company, in particular a SARL-S;
• preparing or following up the agreed business permit and registration applications;
• the tax and social security formalities falling within the engagement;
• organising invoicing, accounting and the transmission of documents.

Where a notary, a lawyer or another professional needs to be involved, their role is identified and kept distinct from that of the firm.

Clear organisation from the outset

Defining responsibilities

The engagement specifies the work entrusted to the firm, the documents to be provided and the timetable for sending them. Meeting deadlines requires complete information and the necessary approvals to be available in good time.

Making exchanges easier

The arrangements for submitting and filing documents are organised with you. Digital tools can make it easier to send them and to keep track of missing documents.

Understanding your accounts

The main components of your results and the points requiring your attention are explained to you. Depending on your needs, interim financial statements or additional analyses may be agreed.

Fees based on the actual scope

Fees take into account the volume and nature of the transactions, their complexity, the quality of the documents and records available, and the frequency of the work.

The scope and fee arrangements are agreed before work begins. Catching up on previous periods, putting the accounts in order or a specific analysis may require an additional service, discussed with you beforehand.