Year end is far less stressful when you prepare for it rather than react to it. This practical checklist helps you get your records in order so your accountant can produce accurate accounts quickly, and often more cheaply. Adapt it to your own circumstances.
Before the year end: get ahead
A little planning in the weeks before your year-end date pays off:
- Know your year-end date. For a sole trader this is usually aligned with the tax year; for a limited company it is your accounting reference date.
- Bring your bookkeeping up to date so you are working from real, current figures rather than a backlog.
- Review anything time-sensitive you were planning anyway, for example expenditure or decisions where timing affects the year they fall in. Discuss these with your accountant rather than acting on assumptions.
Reconcile and check your records
The core of a clean year end is records that match reality:
- Reconcile every bank account so your books agree with your statements.
- Reconcile credit cards and loan accounts in the same way.
- Reconcile your cash if you handle any.
- Clear or explain uncategorised transactions so nothing is left as a question mark.
- Check the VAT account reconciles, if you are VAT registered.
If any of these turn out to be a bigger job than expected, that is usually a sign of something that built up over the year. The common bookkeeping problems that delay year end covers each of them and the habit that stops it recurring.
Sort out invoices and money owed
- Raise any outstanding sales invoices so all your income for the period is recorded.
- Chase overdue customer payments and review your debtors. Identify anything genuinely unlikely to be paid to discuss with your accountant.
- Make sure all supplier bills are entered, including those not yet paid, so your costs are complete.
- Match receipts to expenses and fill any gaps while they are still easy to find.
Stock, assets and equipment
- Count your stock at the year-end date if you hold any, and record the value.
- Update your record of assets (equipment, vehicles and other items the business owns) and note anything bought, sold or scrapped during the year.
- Flag significant purchases to your accountant, as these often affect your tax position.
Payroll and people
- Confirm payroll is up to date and reconciled if you employ anyone or pay yourself through PAYE.
- Check pension contributions have been recorded correctly.
- Note any expenses or benefits provided to staff or directors that may need reporting.
Loans, directors and other balances
- Review any director’s loan account if you run a company. Money in and out of the business by directors needs to be accurate, as errors here can trigger tax charges.
- Check other balances, such as loans, prepayments and anything owed to or by the business, look sensible.
Gather what your accountant needs
Pull together, in one place:
- Access to your bookkeeping software or a complete set of records
- Bank, credit card and loan statements covering the full period
- Details of assets bought and sold
- Stock valuation, if relevant
- Payroll records, if you have staff
- Notes on anything unusual during the year, so nothing needs chasing later
Why it is worth the effort
Tidy records mean your accountant spends time on accounts and advice rather than untangling gaps, which is faster, usually cheaper, and gives you reliable figures to plan from. It also reduces the risk of errors and missed claims. A couple of focused hours before year end routinely saves far more later.
How we can help
We guide clients through year end with a clear list of what we need and a review of anything worth acting on before the date. See our small business and bookkeeping services, or request a quote.