What bookkeeping covers
Keeping accounts means recording each of the company’s transactions so that it can report on them to three readers: the owner-manager, the tax authorities and, where applicable, the shareholders or the statutory auditor. Law 9-88 sets the framework: transactions are entered in the general journal, posted to the general ledger, and an inventory is drawn up at the close of each financial year.
The engagement covers this cycle from start to finish:
- recording purchases, sales, bank and cash from the supporting documents;
- bank reconciliations and monitoring of customer and supplier accounts;
- preparing VAT returns, monthly or quarterly depending on the company’s regime;
- integrating payroll entries, whether or not we handle the payroll;
- year-end closing work: inventory, depreciation, provisions, accruals and deferrals;
- the financial statements (balance sheet, income statement and their notes) prepared in accordance with the CGNC;
- the tax return on taxable income and the tax return package (liasse fiscale).
Who this service is for
SMEs without an accounting department. The owner-manager sends the supporting documents and receives up-to-date accounts, the returns prepared and annual accounts ready for approval.
Companies with an in-house accountant. Their need is often different: a periodic review of entries, handling the year-end closing and year-end returns, or support during an absence. The engagement is then adjusted to what the in-house team already does.
Subsidiaries of foreign groups. They keep accounts in accordance with the CGNC for Morocco, but must also report figures in the group’s format, often under IFRS and on set dates. We prepare both, with a reconciliation table between the local accounts and the group reporting.
How the engagement runs
The engagement letter. It sets out what the firm does, what the company does, how often documents are sent and the dates on which returns are delivered. It is what prevents misunderstandings at year-end.
The monthly or quarterly cycle. The company sends its supporting documents and bank statements. We record, reconcile and prepare the VAT return for the period. Missing documents and transactions without support are listed and sent back to the company during the month, not at year-end.
The year-end closing. It begins with the stock count, confirmation of significant balances and review of fixed assets. Then come the year-end adjusting entries, the financial statements and the computation of taxable income. Article 20 of the CGI requires the tax return on taxable income to be filed within three months of the close of the financial year.
Archiving. Article 211 of the CGI requires the company to keep its invoices, supporting documents and accounting books for ten years. We organize the filing of documents so that they can be found quickly, particularly in the event of an audit.
What you receive
- Up-to-date accounts, with the trial balance and the general ledger for each period.
- VAT returns ready to be filed, with their breakdown.
- A monthly or quarterly statement of customer and supplier accounts.
- At year-end: the financial statements, the tax return package and the tax return on taxable income.
- A closing memo that explains the main figures and flags the points to watch for the next financial year.
Frequently asked questions
What is the difference between a chartered accountant and a certified accountant (comptable agréé)?
Both can keep a company’s accounts. A chartered accountant is registered on the roll of the Order of Chartered Accountants created by Law 15-89. This registration is required of the statutory auditor of a public limited company (Article 160 of Law 17-95). For a company planning a fundraising, a sale or a conversion, this is a point to take into account from the moment it chooses its firm.
What happens if the accounts are behind?
We start with an assessment: financial years not closed, returns not filed, bank accounts not reconciled. The catch-up then proceeds in order of priority, starting with what exposes the company to penalties. The normal cycle resumes once the current financial year is up to date.
Does e-invoicing change the engagement?
It mainly changes the way invoices arrive and are stored. Our article on e-invoicing in Morocco reviews what is planned and what remains to be clarified.
How is the price of the engagement set?
It depends on the volume of documents, the number of bank accounts, the VAT regime and the closing work requested. It is set in the engagement letter, after a discussion of the company’s business and organization.
