Why Year-End Preparation Matters

As the financial year draws to a close, it’s vital that small businesses get their year-end accounts in order. Doing this properly ensures tax accuracy, regulatory compliance, and a clear picture of how your business has performed. It also helps prevent penalties and sets you up for a smoother year ahead.

When Is Your Year-End?

For sole traders and partnerships, the tax year typically ends on 5 April. For limited companies, your year-end is based on your company’s accounting period — usually 12 months from the date of incorporation or your previous year-end. You can check this via your Companies House profile.

Your Year-End Accounts Checklist

1. Organise All Financial Records

  • Sales invoices and receipts
  • Purchase invoices and expense receipts
  • Bank statements
  • Credit card and loan records
  • Petty cash records

2. Reconcile Your Bank Accounts

Make sure your accounting records match your bank statements. Investigate and explain any discrepancies.

3. Review Debtors and Creditors

Chase outstanding invoices from customers and check which suppliers you still owe. This gives a clear picture of your working capital.

4. Process Payroll Year-End Tasks

Complete final payroll for the year and issue P60s to employees. If you’re using PAYE, submit your final Full Payment Submission (FPS) to HMRC.

5. Finalise Stock Levels

If your business holds stock, carry out a physical stocktake. Adjust records to reflect actual stock on hand and write down obsolete items.

6. Check for Prepayments and Accruals

Look for expenses paid in advance (e.g. insurance) and income received early. Accruals should also be recorded for services used but not yet invoiced.

7. Review Fixed Assets

Log any new assets purchased and dispose of any no longer used. Update your fixed asset register and check depreciation is applied correctly.

8. Prepare and Submit Your Accounts

For limited companies, prepare statutory accounts and submit them to Companies House. Then file your Corporation Tax return with HMRC.

What About Sole Traders?

Sole traders and partnerships don’t need to file statutory accounts but must still complete a self-assessment tax return. You’ll need accurate profit and loss figures supported by clear records.

Software Makes It Simpler

Using cloud accounting software like Xero, FreeAgent or QuickBooks can help automate many of these steps. You’ll also stay aligned with Making Tax Digital requirements.

Read more about Making Tax Digital [here](https://www.gov.uk/government/publications/making-tax-digital/overview).

Avoid Common Mistakes

  • Leaving it all to the last minute
  • Forgetting to back up digital records
  • Missing transactions or miscategorising them
  • Not chasing overdue invoices

Get Expert Support with Year-End Accounts

At A Wigglesworth & Company, we’ve helped hundreds of small businesses across South Yorkshire and beyond handle their year-end with confidence. Whether you’re a sole trader, partnership, or limited company, we’ll ensure your records are accurate and your submissions timely.

Don’t face year-end stress alone — get in touch with us today to discuss how we can help.