Your end of year accounts checklist

The tax year runs from April 6th to April 5th each year, which means that the end of the 2022/23 tax year is just days away and for most businesses this also marks the end of the accounting year too.

If this is the case for you and your small business, you don’t have much time to tie up any loose ends for the current financial year before filing them with HMRC and Companies House.

Your end of year accounts indicates your business’s financial health, performance, and management. This is your end of year accounts checklist, so you know what you need to do and check before the close of the fiscal year.

Why do I need an accounting year-end checklist

An end of year accounts checklist will help you remember all the things you must complete and submit before the new fiscal year begins. This helps you remain compliant with HMRC rules and regulations and avoid penalties and fines.

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Writing down and checking off tasks as you go helps to keep track of time and know what to prioritise.

Save your documents

To prepare for the accounting year end, it is important to save any paper and virtual documents throughout the year. You are likely to need bank statements, credit card statements, inventory counts, previous tax returns, loan statements, and payroll reports when submitting your accounts to HMRC.

Creating backup documents and having strict organisation protocols helps to ensure that all the important documents you need at the end of the fiscal year are easily accessible to save last-minute stress.

Organise your books

It is important to make sure that your accounting books are up to date and accurate at all times, but especially so at the end of the accounting period. If you have a dedicated bookkeeper or an accountant who maintains your book throughout the year, this process is likely to be simple and straightforward to spot any duplicate or missing entries.

If you use cloud-based accounting software like Xero, you will be able to quickly look at your books with real-time updates and insights.

Prepare your spreadsheets

Balance sheets, income statements, and cash flow statements are helpful documents that will help you complete other tasks on the checklist. Having these spreadsheets ready and up to date in preparation for your end of the fiscal year will be a great convenience.

Having prior knowledge of your company’s cash flow, the gains and losses of your business, and the business’s financial state will help you to assess your business position and set goals for the future.

Review accounts

You should also review your accounts payable and accounts receivable to make sure you have settled all outstanding payments. Remember to check for missing or outstanding invoices and contact any customers who have unpaid payments. It is also important you pay any late bills and follow up any uncashed checks.

Examine business finances

Using the documents and spreadsheets you have prepared and collected, you will be able to examine your business finances. Profit margins, cash flow, and debt ratio will provide a transparent view of your financial health.

By understanding your financial position, you are able to estimate growth for the next year and evaluate which business goals you have met and which you are still working towards.

Set goals for the new year

A new year is a great time to set new goals and carry over any that you did not meet from the last year. Setting goals helps you plan for the future and provides clear business targets throughout the year.

Consider setting goals that are measurable, so you can determine whether they have been met with data. Specific, relevant, and achievable goals also ensure that you stay on track and motivated.

At React Accountancy we have the industry experience and expert knowledge to help you understand and prepare for the end of your accounting year. With a range of accounting services available, we are on hand to provide accounting and bookkeeping support when you need it.

If you are unsure how to prepare for the end of your fiscal year, get in touch with us today.

We provide our services across ManchesterStockportLondonBirminghamCardiffBristolGlasgowLeedsNottinghamLeicesterEdinburghSheffieldBradfordCoventryLiverpool and Belfast.

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We believe in working with our clients to make accountancy services easy. Get year-end accounts, CT600 corporation tax, payroll, bookkeeping and management accounts made easy.