Things to consider before the end of the year
The year is drawing to a close and 2026 is just around the corner. For those running a business, a new year means both wrapping up the old and preparing for what’s ahead.
Bookkeeping Across the Year-End
If you use the cash basis method and record invoices when payments are made, you need to check whether you have any unpaid customer or supplier invoices at the turn of the year. If so, these should be recorded as accounts receivable and accounts payable on the last day of the financial year. This ensures that your sales, purchases, and VAT are allocated to the correct period.
Year-End Accounts
When the year ends, you close your ongoing bookkeeping with year-end accounts, which include both a profit and loss statement and a balance sheet. The profit and loss statement shows the company’s income and expenses, while the balance sheet shows its assets, liabilities, and equity.
If your net turnover does not exceed three million SEK, you can prepare simplified year-end accounts. These simplified accounts form the basis for your tax return.
It’s a good idea to complete your accounts early, as this makes it easier when filling in your NE attachment for your income tax return.
Annual accounts for sole traders
Preliminary Tax
Before each calendar year, you submit a preliminary income tax return to the Swedish Tax Agency with an estimate of your expected surplus for the coming year – in other words, the difference you anticipate between income and expenses.
If you do not submit a preliminary income tax return, the Tax Agency will calculate your preliminary tax based on last year’s figures, such as those provided in your most recent tax return. If your results change during the year, you can submit a new preliminary return at any time, free of charge.
Taxes and contributions for sole traders
Making Extra Pension Contributions
As you review the year, it may also be a good time to look at your pension and consider whether you can make an additional contribution to your pension savings.
If you have income from active business activities, you can pay into and deduct contributions for private pension savings. You may deduct up to 35% of your income from business activities, with a maximum of 10 income base amounts – that is, up to SEK 588,000 (2025). To qualify for the deduction, you must save in a pension insurance policy or a pension savings account.
Closing a Sole Proprietorship
If you are considering changing your business structure, selling your business, or closing it entirely, it’s a good idea to do so before the year-end. It’s important to close the business properly.
At verksamt.se, you can find out what steps you need to take, such as deregistering your business with the Swedish Companies Registration Office and deregistering for VAT and F-tax with the Tax Agency. You also need to adjust your preliminary tax to zero for the coming year.