Your go-to year end accounts checklist

Closing off the financial year for your business involves lots of specific tasks, each of which need to be completed accurately and on time

It’s important that everything is checked and that any loose ends are tied up before the financial period is closed.

Using a year-end accounts checklist can really make a difference as it focuses everyone’s mind on the job in hand, and ensures nothing gets missed.

We’ve prepared an easy-to-use end-of-financial-year (EOFY) checklist to help you and your team organise what needs to be done.

When is the year-end accounting period?

The end of the financial year can mean slightly different things to different businesses.

There is plenty to do within a relatively short space of time, so keeping on top of things can be challenging. It’s useful to create a plan of attack, breaking down what needs to be achieved into tasks and assigning them to specific team members.

Prepare your finance team for your business's financial year-end by treating it like a project with a plan and action points, as well as a means of keeping track of who is doing what and the progress made.

And don’t forget, as the end of year accounting period is a stressful time, make sure your people get enough breaks and are working together to share the workload.

The tax year (or fiscal year) always runs from 6 April to 5 April and the majority of businesses use this date for their accounting year too – hence the need for everything to hit the same deadline.

However, some businesses prefer to choose another date for their business year-end. Many find it convenient to use 31 March as the end date, for example, others follow the calendar year.

It’s that time of year again - when every business checks that their year-end accounts and records are all in order, creates statements of the year-end position, and conducts a comprehensive financial reporting process.

Accurate year-end accounts not only ensure compliance but also give your business a clear snapshot of its financial health. By reviewing your accounts thoroughly, you can spot opportunities to improve cash flow, optimise expenses, and set informed goals for the coming year. It's a critical process that enables business leaders to make data-driven decisions and avoid costly penalties. Read more in our comprehensive year end accounting guide.

Ready to simplify your year-end? Download our year-end accounts checklist to ensure you stay on top of every task.

Your goal is to identify and resolve any irregularities, ensure everything balances, and then close off the year. The EOFY checklist below outlines 10 key areas to cover.

1. Process employee bonuses

If you’re giving annual bonuses, don’t forget that these are subject to income tax. Alternatively, if you decide to wait and pay bonuses after year-end, you can accrue for employers’ national insurance costs as well as the bonus and reverse when the payment is made. It means the cost is included in the correct financial year; it may also lower the company corporation tax bill.

2. Safeguard cash balances

Consider postponing payments to suppliers by a short period to keep cash balances as high as possible for year-end. While supplier liability will be logged on the balance sheet, a higher cash balance is preferable and helps to improve credit agency ratios. Do take care to maintain open communication with your suppliers and safeguard cash balances whenever possible.

3. Employee expenses

All employee expenses (including any home working expenses) must be processed before the end of the financial year and included in costings for the correct tax year. This will help to reduce your corporation tax liability.

4. Review control accounts

Review wages, PAYE, pension and VAT control accounts and ensure they reflect accurate liability positions. Also check prepayments, accruals and deferred income. If your balance sheet is incorrect, your profit and loss account record is likely to be incorrect too.

5. Balance sheet analysis and profit and loss

Use your accounting software to generate a balance sheet and profit and loss reports and then spend some time analysing and identifying what your business did well, what requires more attention, and where improvements can be made.

6. Cash flow analysis

Accounting software makes it easy to create a cash flow statement. Use this to analyse and forecast, taking into account upcoming company plans as well as any changing legislation on the horizon.

7. Corporation tax estimation

Calculate an accurate estimate of the corporation tax liability using the applicable rate and include this in your cash flow forecast.

8. Tax payment extensions

Decide whether a tax payment extension will be needed. If it is, you will need to consult HMRC (as soon as possible) to avoid having to pay a penalty.

9. Client list review

Ensure the contact information you have for your current client list is up-to-date and delete any unnecessary data in line with your GDPR responsibilities. Year-end is also a great opportunity to thank your clients for their business and look forward to the new year.

10. Set goals for next year

Take time to review performance against goals for the last financial year, taking into account the factors that had a positive or negative impact on the outcomes. With this as context, you can now set new objectives for the coming year in line with business plans and goals.

Download the year-end accounts checklist so you can easily tick off each step at the end of each year.

Who needs a year end checklist?

Whether you’re a small business managing a handful of clients or a larger corporation with more complex financial operations, a year-end accounts checklist helps ensure accuracy and efficiency. For businesses facing audits, handling multiple accounts, or managing large inventories, a checklist keeps you organised and reduces the risk of mistakes.

To ensure a smooth year-end process, follow these steps:

1. Set a Close Schedule: Create a timetable tailored to your business model. Allocate tasks to team members and finalise key figures like stock balances.
2. Gather Documentation: Compile essential documents such as income statements, cash flow statements, and balance sheets, which will form the basis for your assessment and HMRC submissions.
3. Forensic Check of Accounts: Review accounts payable and receivable for errors, missing invoices, and unpaid amounts. Ensure all outstanding payments are made.
4. Summarise Cash Flow: Record cash inflows and outflows from financial, operating, and investing activities to assess the net change in cash flow over the year.
5. Complete a Stock Take: If applicable, accurately record inventory to reflect in your profit and loss statement, accounting for unsold or damaged stock.
6. Analyse Financial Performance: Review profit margins, ratios, and cash flow forecasts. Use year-end data to monitor peaks, troughs, and upcoming expenses.

Year-end review and forward planning

1. Review Pricing Strategies: Year-end is a good time to evaluate pricing against competitors and adjust where necessary.
2. Assess Performance: Examine financial statements, team output, and customer feedback to evaluate how well the company has performed.
3. Re-examine Tax Strategies: Consider improving your tax systems, including digitisation, to increase efficiency and prepare for any upcoming regulatory changes.
4. Plan for the Next Financial Year: While finalising last year’s accounts, support other business functions with budgets, forecasts, and growth strategies. Assess factors like new hires, infrastructure investments, and the scalability of support systems.

Who to involve in the year-end process

Collaboration is key during year-end. Finance should work closely with the wider business to align targets for the new financial year. Engaging with IT can help streamline processes using emerging technologies like cloud computing, AI, and RPA. By leveraging smart tech, the Finance team can focus more on providing strategic support while fulfilling their statutory obligations and keeping key stakeholders informed of the company’s financial performance.

Future-proof your end of year accounts with our accounting software

Our accounting software not only streamlines complex accounting tasks but also provides real-time reports, automates reconciliations, and ensures HMRC compliance. With automated alerts for discrepancies and a user-friendly interface, your team can focus more on strategy and less on manual work. Discover our accounting software.