Preparing for your Financial Year End

Client Checklist

As your financial year end approaches, taking the time to ensure your records are complete and accurate can make the accounts preparation process far smoother. Proper preparation helps ensure that your financial statements present a true and fair view of your business performance, while also helping us prepare your accounts and tax returns efficiently.

Below is a checklist of key areas we recommend reviewing before submitting your records.

1. Ensure all data has been entered

It is important that your bookkeeping records are fully up to date before the year end.

Please ensure that:

• All sales invoices relating to the financial year have been entered.

• All purchase invoices and expenses relating to the year have been recorded.

  
  

Missing transactions can result in financial statements or tax returns that do not accurately reflect the performance of your business. Ensuring all transactions are recorded will help avoid delays or adjustments during the accounts preparation process.

2. Bank and cash reconciliations

All business bank accounts and cash accounts should be reconciled to the correct balance at the financial year end date.

This means that:

• The balance in your accounting software should match the balance shown on your bank statement at the same date.

• Any differences should be investigated and resolved.

Reconciliations should always be supported by third-party documentation, such as bank statements or physical cash counts. Accurate reconciliations ensure that all income and expenses flowing through your accounts have been properly recorded.

3. Review trade debtors (amounts owed to the business)

Trade debtors (also known as trade receivables) represent money owed to your business by customers at the year end.

You should review your aged debtor report and confirm that:

• All balances are correct and expected to be received after the year end.

• There are no unexpected or unusual balances.

• There are no negative balances.

  
  

If discrepancies appear, common causes include:

• Duplicate sales invoices.

• Customer payments that have not been recorded.

• Payments received in cash or into a private bank account that have not yet been entered in the software.

Resolving these issues before the year end will help ensure accurate reporting.

4. Review trade creditors (amounts owed to suppliers)

Trade creditors (also known as trade payables) represent amounts your business owes to suppliers at the year end.

When reviewing your aged creditor report, please ensure:

• All balances are accurate and relate to valid supplier invoices.

• All balances are expected to be paid after the year end.

As with debtors, negative balances should not normally appear. Negative balances can indicate that a payment has been entered without the associated purchase invoice, or that transactions have been recorded incorrectly.

5. Stock take

If your business holds stock, performing a stock take at the financial year end is essential.

An accurate stock valuation ensures the cost of sales and overall business profit are calculated correctly.

As your year end approaches, we aim to send clients a stock sheet template to assist with this process. If you require additional copies or guidance on how to complete the stock take, please let us know and we will be happy to help.

6. Important documentation

When preparing your business accounts, we may require supporting documentation depending on your circumstances. Please ensure we receive copies of any relevant documents, including:

• Hire purchase agreements entered into during the year.

• Bank loan statements for all existing loans.

• Loan agreements for any new borrowing during the year.

• Invoices for fixed asset purchases (such as vehicles, machinery, or equipment) if these are not already accessible through your bookkeeping software.

  
  

Providing this information ensures that we claim all available capital allowances which reduce your taxable profits and ultimately tax liability.

Final Thoughts

Taking time to review your records before your financial year end can greatly improve the accuracy of your accounts and the efficiency of the year-end process.

If you are unsure about any part of this checklist or would like assistance preparing your records, please feel free to get in touch with our team.

We are always happy to help ensure your year-end runs as smoothly as possible.