End of financial year checklist for accountants

There is plenty to do within a relatively short space of time, so keeping on top of the seemingly endless list of fiscal year-end tasks can be a challenge. Creating a plan of attack and breaking down what needs to be done and assigning tasks will help you achieve that successful end of financial year and reduce unnecessary tax time stress.

Read on to learn how you can prepare your accounting practice for success come the end of financial year.

What is a year-end checklist for accountants?

Managing the end of a financial year for accounting practice can be stressful, as it involves many specific tasks, each of which needs to be completed accurately and on time.

As an accountant, the end of the financial year is a crucial time for practices to ensure that all financial activities are properly recorded, books are reconciled, and necessary accounting reports are prepared. 

It’s important that everything is checked and that any loose ends are tied up well before the financial period is closed. Using a fiscal year-end checklist for accountants can make a difference as it helps everyone focus their mind on the job at hand and help makes sure nothing gets missed.

To help your accounting practice with this end of financial year process, we have prepared an easy-to-use EOFY checklist to help you and your team organise what needs to be done.

For more information on tax time efficiencies this end of financial year, check out our blog: How to really prepare your tax practice for tax time.

For a general accounting practice review you can conduct any time of year, read more here: Is it time for an accounting practice health check?

End of the financial year for accountants in 5 steps

The end-goal of all accounting practices during the end of financial year craziness is to identify and resolve any issues to close off the financial year and make tax time for your practice as stress-free as possible.

Here's an EOFY checklist of 5 key areas to help your accounting practice stay organised and complete important tasks during this financial period.

1. Picture your year ahead

Now that the end of financial year is approaching, it is important to start thinking about what the year ahead is going to look like for your accounting business and what do you want to achieve.

As the new start of the financial year approaches, consider your accounting budget, accounting KPIs and undertake scenario planning.

This end of financial year, calculate the likely impact on your business if expenses blow out, fuel costs increase, wages rises, or interest rate hikes continue. Would you need a loan? Understand the different thresholds for your business and plan accordingly.

For more information on KPI's for accounting practice, check out our blog: The 11 best KPI's your accounting practice should be tracking.

2. Review, meet and follow up

This end of financial year, you should review your client list, check profitability from each client and be decisive. With accounting practices struggling to hire accounting staff in the face of a massive talent shortage, now is the time to let low-to-no margin clients go.

Then lock in planning meetings with your accounting practice clients. Draft a clear agenda to clarify your client’s professional goals. As a true accountant partner and advisor, you have the opportunity to be across more than just their accounts, by offering real value to their business planning.

Build in reviews and keep connected via a client portal, offered through client management software, so all actions can be updated and adjusted as needed, this will improve your client experience.

For more information on the client experience, check out our blog: mastering client relationships for accounting practices.

3. Look for higher value work

This end of financial year, cast an eye over your accounting practice and client base for opportunities to shift from data entry and preparing tax returns to paid business advisory or outsourced roles.

Accountants told us they spend, on average, two hours every day collating and curating practice and client data. Use this pivot point to look at how you can free up time for higher value work.

Could you outsource bookkeeping and data entry? Could you automate time consuming tasks?

Could you use that freed up time to become the outsourced CFO for a client who doesn't want to commit to a full-time, in-house CFO, for example?

Advising doesn’t just create a new revenue stream. When you educate clients on how to improve their data capture and processes, the result is better quality records for them – and an easier year-end for you.

For more information on outsourced accounting and how it compares to recruiting staff in-house, read our article on hiring an accountant vs. accounting outsourcing: what does your practice truly need? 

4. Review your accounting practice software

Advising clients to use the bookkeeping software best suited to their industry will make their end of financial year easier and give you cleaner records.

Using a centralised data warehouse and analytics platform means you can import client data, directly from their bookkeeping package of choice.

Likewise, use accounting practice management software best suited to your practice, including integrated features to run all aspects of your practice to improve client experience and increase productivity.

Remember you can streamline how you prepare, manage and lodge tax returns this tax time with our tax software.

5. Review your accounting practice fees

Build in incentives to make this end of financial year easier for both your accounting practice and your clients.

For example, offer fixed price agreements based on the quality of their books – a percentage discount for a certain standard, a bigger reduction if records are reconciled, backed up or on an electronic system.

Yes, you may get a lower fee, but you’ll do the job faster, your margin increases and you can take on more clients or other work.

Read our guide to accounting practice fees here: Starting an accounting practice.

Planning for the start of financial year

Here are two reasons why start of the financial year planning for accountants is especially important:

1. There is an increased appetite for advisory services from businesses hungry for growth and guidance as the economy bounces back from the pandemic.
2. The end of a financial year is the perfect "full stop", giving accountants the breathing space to reevaluate and seek out new opportunities.

 The key for start of the financial year for accountants is to plan to start - and start planning!