How to prepare year-end accounts

Time needed: 4 days

Year-end refers to the end of your company’s accounting period. It is also known as an accounting reference date for limited companies. This is when you close your accounting period for the financial year and file the statutory year-end accounts with HMRC and Companies House.

  1. Prepare for your accounts throughout the year

    Do not leave it until the last minute to collate all the information required for your year end accounts. Prepare for it throughout the year. We suggest starting to work on your year end accounts a month before it is due so you can chase invoices and payments

  2. Gather relevant paperwork

    The paperwork you need to ensure you have is income records, bank statements, statements of account from suppliers, invoices and receipts.

  3. Chase late payments

    You should chase any unpaid invoices before the reporting deadline and bank any payments you receive to ensure your accounts are as accurate as they can be.

  4. Sort any expenses

    Expenses will reduce your company’s profits meaning you will pay less corporation tax, so keep track of anything you spend.

  5. Double check your records

    Make sure that your records match your supporting documents. Also make sure that sales made but not yet paid for are listed as outstanding debts owed, rather than as revenue.

  6. Update staff records

    Make sure your staff records are up-to-date especially when it comes to payroll, benefits and expenses. You don’t want to have any mistakes relating to tax or National Insurance.

  7. Hire an accountant

    The easiest way to achieve year end reporting is to hire a good accountant who can get to know your business in depth. We offer this service of course. Year-end accounts

  8. Be mindful of meeting the deadline for submitting your year end accounts

    Send your first accounts to Companies House. The deadline could be different if you have changed the accounting period with Companies House. You can check this on the Companies House website here

    File subsequent annual accounts with Companies House – 9 months after the end of your company’s financial year

    File your Company Tax Return with HMRC.

    Pay corporation tax to HMRC (or tell them that the company doesn’t owe any) – 9 months and 1 day after the end of your accounting period