End-of-Year Accounting Checklist

October 19, 2023

Our Guide for End-of-Year Accounting

End-of-year accounting is an important financial process that occurs at the end of a company’s fiscal year. During this period, companies review their financial records, reconcile accounts, and prepare financial statements. This process helps to ensure that financial records are accurate, complete, and compliant with accepted accounting standards.

End-of-year accounting also provides valuable insights into a company’s financial health and performance, which can help inform key business decisions for the coming year.

What is a company’s end-of-year?

The end-of-year accounting period generally refers to the last day of the company’s financial year, which is typically the end of a calendar month (for example 31st December), although it could be any date. The company’s end-of-year also triggers the countdown to when certain statutory filings must be made.

What does a business need to prepare for a company’s end-of-year?

During this time, businesses must put together their financial records and produce a set of financial statements which typically includes an income statement and balance sheet. These financial statements provide a snapshot of the company’s financial performance for the year and are used by investors, lenders, and other stakeholders to assess the company’s financial health.

The end-of-year accounting period also marks the beginning of a new financial year for businesses. This means businesses must take note of their financial position and prepare for the year ahead. This may involve:

  • Setting new financial goals
  • Assessing the feasibility of new projects
  • Developing new strategies to improve profitability

It is important that businesses ensure they comply with all tax laws and regulations, including filing their tax returns and making any necessary payments.

To help keep it simple, the general steps you’ll take for your end-of-year accounting will look like this:

  1. Tracking down all relevant end-of-year information, using our handy ‘end-of-year checklist’ outlined for you in this article.
  2. Collating the information in one place is made easy with our accountancy software that’s outlined for you in this article.
  3. Ensuring your financial reports comply with tax laws and regulations.
  4. Submit your end-of-year report to Companies House and HMRC.

How to prepare for the end-of-year?

Like anything in life, it helps to be prepared for your end-of-year accounts, and planning can alleviate a lot of stress during this time.

One way to ensure that everything is in order all year round and to ease the stress of the end-of-year report is to use online accounting software such as Xero and FreeAgent. Online accountancy software can help you keep track of your finances, generate reports, and ensure that everything is properly documented. By using online accounting software, you can stay on top of your finances and avoid any last-minute surprises when the end-of-year report comes around. This can save you time, money, and stress, allowing you to focus on growing your business.

Accounting end-of-year checklist

To help you prepare for the end-of-year accounts, we’ve put together the following checklist:

  1. Gather all financial documents, such as receipts, invoices, bank statements, and credit card statements.
  2. Reconcile all bank and credit card accounts to ensure all transactions have been recorded accurately.
  3. Review all outstanding accounts receivable and accounts payable.
  4. Ensure you have recorded any new fixed asset purchases or asset disposals that have been made in the year.
  5. Complete a physical inventory count to obtain the value of stock held at your company year-end date.
  6. Ensure any payroll information is included in your accounts, particularly if an external payroll provider has been used.
  7. Keep all financial records and documents organized and easily accessible for future reference or audits.

Once you have obtained all the above information, your end-of-year accounts will need to be prepared in accordance with financial reporting standards.

Your end-of-year accounts will need to reflect the following information:

  1. Income statement: This statement shows your company’s revenue and expenses over a specific period, such as a year. It gives you an overview of your business’s profitability.
  2. Balance sheet: This statement shows your company’s assets, liabilities, and equity at a specific point in time. It gives you an idea of your company’s financial position.
  3. Inventory: Any stock held at your year-end date must be reflected in the accounts.
  4. Accounts receivable: You need to record any outstanding payments owed to your company by your customers.
  5. Accounts payable: You need to record any outstanding payments that your company owes to its suppliers.
  6. Depreciation: You need to account for any depreciation when reflecting the value of any fixed assets held by the company.
  7. Tax returns – You will need to compile your Corporation Tax Return and file this to the relevant tax authorities.

Remember, end-of-year accounts can be a complex process, so it’s always a good idea to seek professional accounting assistance if needed.

What is the importance of a company’s end-of-year?

Transparency and accuracy are both key when it comes to creating end-of-year accounts because they can be used by shareholders, investors, and other stakeholders to make important decisions about the company’s future.

Here at CloudAccountant.co.uk, we can ensure that your accounts are compiled in compliance with accounting standards, which ensures your financial statements give a true and fair view of your business performance. Book a free, no-obligation call with one of our accountants today.

How to submit your end-of-year reports to HMRC?

The deadline for filing your Corporation Tax Return to HMRC is 12 months after the end of the accounting period which it covers. You will need your company’s Unique Tax Reference number when making your filing.

It is important you meet your filing deadline. If you do not file your Corporation Tax Return by the deadline you will have to pay penalties to HMRC.

Time after your deadlinePenalty
1 day£100
3 monthsAnother £100
6 monthsHMRC will estimate your Corporation Tax bill and add a penalty of 10% of the unpaid tax
12 monthsAnother 10% of any unpaid tax

How to submit your end-of-year reports to Companies House?

As well as HMRC, your year-end accounts need to be filed to Companies House, within 9 months of your year-end date. You’ll need to know your company’s authentication code to file your accounts to Companies House.

Period of latenessPenalty
Up to 1 month£150
Up to 3 months£375
Up to 6 months£750
More than 6 months£1,500

It’s important you always file your accounts on time, as the penalties will be doubled if your year-end accounts are filed late two years in a row.

Get in touch

Here at CloudAccountant.co.uk, we have over ten years of understanding and proactively supporting businesses with their tax and accountancy needs, up and down the UK.

If you have any questions please get in touch with one of our friendly team members who can help you.