2025 Accounting and Tax Closing: Key Aspects for Starting 2026 with Confidence and Compliance

With the close of the 2025 tax year and the start of 2026, it is essential that companies conduct a comprehensive review of their accounting and tax records to ensure regulatory compliance, the reasonableness of financial information, and adequate planning for the new period. An orderly close not only reduces the risk of audits and penalties, but also provides reliable figures for strategic decision-making. Translated with DeepL.com (free version)  

1. Identification of the applicable accounting framework 

As a first step, it is essential to identify the regulatory group to which the company belongs:

• Group 1: Apply full IFRS.
• Group 2: Apply IFRS for SMEs.
• Group 3: Apply simplified accounting standards. 

This classification determines the accounting treatment of transactions and serves as the basis for subsequent analyses. 

2. Review and cleansing of accounting accounts 

This process must be carried out in accordance with current accounting and tax regulations, including those established in the Tax Statute, Decree 2420 of 2015, and International Financial Reporting Standards (IFRS), depending on the applicable group.

A proper closing starts with clear accounts. To this end, it is recommended to review, among other things, the following aspects:

Bank reconciliations 

In accordance with Articles 261 and 268 of the Tax Statute, it is essential that the accounting balances reflect the economic reality of the company.

• Verify that the accounting balances match the bank statements.
• Identify and support reconciling items such as outstanding checks, rejected transactions, or transactions in transit. 

Proper reconciliation avoids questions about the origin or destination of funds.

Inventories 

Inventories must be valued and recognized in accordance with the provisions of Article 65 of the Tax Statute and IAS 2.

• Confirm that inventories are correctly valued in accordance with the company's accounting policies.
• Review the valuation method applied.
• Identify losses, obsolescence, or inventory write-offs that must be recognized for accounting purposes and that may have tax implications. 
   

Fixed Assets 

The recognition, measurement, and depreciation of fixed assets must comply with the provisions of Articles 60 and 137 of the Tax Statute, as well as IAS 16 and, where applicable, IAS 41 for biological assets.

• Verify that the recorded assets physically exist.
• Confirm that they are correctly classified and supported.
• Review the calculation of accounting depreciation and the necessary adjustments for tax purposes.
• Consider, where applicable, estimates of dismantling and the review of biological assets. 

Provisions and liabilities 

The recognition of provisions is governed by IAS 37, while the tax origin of liabilities requires validation of their reality and support, in accordance with Article 239-1 of the Tax Statute.

• Record provisions such as income tax and ICA.
• Validate that liabilities are duly supported and correspond to actual obligations.
• Reconcile liabilities for social security contributions with the corresponding payrolls, taking into account that December contributions must be paid before filing the income tax return for deductibility. 
   

Accounts receivable 

Accounts receivable must be analyzed considering the provisions of Articles 145 and 146 of the Tax Statute, as well as the impairment criteria established in IAS 39 and IFRS 9. In transactions with related parties, the rules on presumptive interest established in Article 35 of the Tax Statute must be taken into account.

• Review accounts receivable, including those in foreign currency.
• Identify difficult-to-collect portfolios and assess impairment recognition, provided that accounting and tax requirements are met.
• Verify transactions with related parties, considering the associated tax effects.

 3. Income, costs, and expenses  

The tax recognition of income, costs, and expenses must be analyzed primarily in light of Articles 28, 107, 122, 165, 177-1, and 177-2 of the Tax Statute.  

Revenue

• Confirm that tax revenue corresponds to revenue accrued for accounting purposes during 2025.
• Analyze possible special treatments that may generate differences between accounting and tax recognition. 

Cost and expenses 

Before closing the year, it is essential to verify that the costs and expenses to be deducted:
 

• Are duly supported by an electronic invoice, supporting document, or electronic payroll, as applicable.
• Comply with the principle of causality.
• Have withholding taxes applied where applicable.
• Comply with the requirements for bank payments and limits on cash payments.
• In the case of payroll, include social security and parafiscal contributions and comply with the limits on non-salary payments. It is also important to identify non-deductible costs and expenses and those associated with non-taxable income or exempt income. 

4. Additional essential validations  

These validations are supported, among other regulations, by Articles 771-2 and 771-5 of the Tax Statute, Single Regulatory Decree 1625 of 2016, and DIAN resolutions on invoicing and electronic documents. 

Within the closing process, there are validations that must not be omitted:

• Download and validation of RADIAN with regard to electronic invoices, credit and debit notes issued by third parties on behalf of the company.
• Verification of the correct registration of supporting documents with third parties not required to invoice electronically.
• Review of customer, supplier, and employee service expenses, considering their limits.
• Consolidation and comparison of social security contributions against accounting records.
• Identification of differences in accrued and realized exchange rates. 

5. Tax reconciliation

Reconciliation between accounting and tax information is an essential part of the closing process, in accordance with Articles 21-1 and 772-1 of the Tax Statute and its reporting through Form 2516.

It is essential to reconcile accounting information with tax returns filed during the year:

• Compare accounting income with what is reported in VAT, ICA, self-withholdings, and income.
• Verify that all returns have been filed and paid on time.
• Identify differences that require adjustments or corrections before the final closing.
• Consolidate tax returns (VAT, withholdings, ICA) for the fiscal year in order to identify differences that can be corrected before the end of the year.  

These reconciliations reduce audit risks and facilitate the preparation of the income tax return.

6. Other key aspects of the fiscal year-end  

This analysis should consider, among others, Articles 35, 70, 72, 147, 258-1, 259-1, and 289 of the Tax Code, as well as IAS 12 for the recognition of deferred tax and paragraph 6 of Article 240 of the Tax Code on the minimum tax rate.

During the 2025 year-end closing, it is also recommended to review:

• The origin of tax deductions, such as donations, special investments, or the acquisition of productive fixed assets.
• The offsetting of tax losses, verifying their validity and conditions.
• The recognition of deferred tax assets and liabilities, for accounting purposes only.
• The calculation of the minimum tax rate.
• The correct preparation of the tax reconciliation and its reporting in the required formats. 

7. A well-executed closing: an advantage for 2026 

A well-organized accounting and tax closing allows you to:

• Properly comply with your obligations to the tax authorities.
• Have clarity about the real financial situation of your business.
• Be prepared for requests or audits.
• Make better decisions for 2026, with reliable and timely information.

At RSM Colombia, we have a team specializing in accounting and taxation that is ready to accompany you throughout the accounting and tax closing process for the 2025 tax year, providing you with peace of mind and technical support.