Monthly Closing Checklist

A Portuguese company's month-end close is built around statutory deadlines: invoice reporting to the Tax Authority by the 5th, the monthly remuneration return (DMR) by the 10th, withholding tax by the 20th and the periodic VAT return by the 20th of the second following month, paid by the 25th. This checklist organises the month around those dates.

The statutory deadlines that shape the close

The new Social Security reporting model (Decree-Law 127/2025 of 9 December) is optional during 2026 and mandatory for every employer from 1 January 2027. For VAT, when the 20th or the 25th falls on a Saturday, Sunday or public holiday, the deadline moves to the next working day.

Week 1 (days 1 to 5): documents and invoices

• Close last month's invoicing and check that every invoice, credit note and receipt was issued in certified software.
• Report invoices to the Tax Authority by the 5th, even if your software does it automatically: confirm in e-Fatura that the file was received.
• Collect supplier invoices, proof of payment and statements for every bank account and card.

Week 2 (days 6 to 10): bookkeeping and payroll

• Post sales, purchases and bank movements.
• Run payroll: payslips, IRS withholding and Social Security at 11% for the employee and 23.75% for the employer (art. 53 of the Contributory Code).
• File the DMR with the Tax Authority and the remuneration declaration with Social Security by the 10th.

Week 3 (days 11 to 20): reconciliations and payments

• Reconcile every bank account against the books and chase movements without documents.
• Pay IRS and corporate tax withholdings by the 20th.
• Pay Social Security contributions within the window of the model your company is on.
• In months with a periodic VAT return, check the calculation and file by the 20th; pay by the 25th.

Week 4: trial balance and review

• Check the trial balance and the balances of customers, suppliers, the State and Social Security.
• Book accruals and deferrals (rent, insurance, holiday pay) so the month's result is accurate.
• Compare the result with the budget and the same month last year, then archive the documents.

Mistakes that delay the close or cost money

• Expenses without an invoice in the company's name. A cost without supporting documents is not deductible (art. 23(3) and (4) of the Corporate Tax Code) and undocumented expenses bear 50% autonomous taxation (art. 88(1)).
• Purchase invoices without the company's tax number. VAT is only deductible on a properly issued invoice (art. 19(2) of the VAT Code).
• Missing statements. Without every statement the reconciliation is incomplete and the trial balance no longer reflects real cash.

For the full-year calendar, see the 2026 tax deadlines guide. If you would rather hand the close to people who do it every month, see HVR's company accounting.