Preparing Your Business for Financial Year-End

The end of the financial year is a natural point to take stock. It is also when statutory accounts and tax returns are prepared, so the quality of your preparation has a direct effect on how smoothly the process runs.

Start early

Year-end preparation is far easier when it begins a few weeks before the year closes rather than after. Early preparation gives you time to resolve queries, locate missing documents and consider any decisions that may need to be made before the year ends.

A practical year-end checklist

• Reconcile all bank and credit card accounts to the final day of the year.
• Review outstanding customer invoices and consider whether any are unlikely to be paid.
• Review supplier balances and confirm that all invoices have been recorded.
• Count and value stock, where relevant, in a consistent manner.
• Review fixed assets, recording additions and disposals during the year.
• Identify accruals and prepayments, so that income and costs fall into the correct period.
• Check payroll records for accuracy and completeness.
• Gather supporting documents for loans, leases and other agreements.

Review the year's performance

Once the figures are complete, take time to compare them with your budget and the previous year. Which areas performed better than expected, and which fell short? The answers form a valuable starting point for planning the year ahead. Our article on financial reporting explains how to read these figures effectively.

Consider timing-related decisions

Some decisions, such as the timing of significant purchases, may have financial or tax implications depending on which side of the year-end they fall. These should always be considered in the context of your specific circumstances and with appropriate advice.

Plan for the year ahead

Year-end is the ideal moment to set a budget, agree priorities and refine processes that caused difficulty during the year. If you would like support with your year-end, get in touch with our team.