Small Business End of Year Accounts Checklist - Boffix

Small Business End of Year Accounts Checklist

July 5, 2018  /  Amber Elliott
female business owner working out her accounts

What are your end of year accounts?

At the end of the financial year your company is required to submit end of year accounts. In simple terms this includes reconciling all of your accounts, filling in the appropriate forms and submitting them to HMRC. It’s a complicated way of saying here is how my business finished at the end of the accounting year.

Small business Lifecyle

In a yearly lifecycle of the small business, business owners dread three things:

  1. Tax return deadline
  2. VAT returns
  3. The end of year accounts

To accountants these three elements are simple but to the small business they can be considered a daunting and stressful task.

Like any task relating to your business this requires organisation. We strongly recommend to all our clients that to aid with this task, don’t leave it all to the last minute. Instead manage your accounts throughout the year. This will make gathering the information for your end of year accounts and meeting other financial obligations much easier.

Here is a checklist of all the information required to submit your end of year accounts:

Bank statements

You will need bank statements for all your business accounts for the whole period. This includes personal, savings and referrals accounts. Even if an account received 6p of interest this still needs to be considered.

Loan Statements

Did you take out any loans during the year? If so you will need proof of these statements.

Business Credit Card

If you have a business credit card, then you’ll need to submit these statements too. If it’s a personal card that you occasionally use to pay for business expenses, spend time highlighting these.

Finance Agreements

Details of any finance agreements taken out during the year. If you’ve got a new hire purchase, you must let your accountant know. The interest on the repayments is a tax-deductible expense and the asset could fall under the annual investment allowance. Failure to disclose a new piece of equipment could add hundreds of pounds to your tax bill.

Payroll Records

All your payroll records for the year (unless your accountant runs your payroll of course). You’ll need a print out of each month’s pay run, so they can reconcile the net payments made to employees. Make sure your reports show employers national insurance; payslips are not enough.

Sales Income

All of your sales income, including every sales invoice for the year regardless of whether they have been paid or not. If you run an online shop, then your accountant will need your total sales before any fees were deducted.

Purchases

All of your purchase invoices and expenses receipts for the period. If your accountant doesn’t have these then they may need to make assumptions, and/or some expenses could be missed out altogether, increasing your tax bill.

Petty Cash Receipts

Petty cash receipts and also a note saying the petty cash balance at the year end. Your accountant will need to reconcile your cash so this vital.

Stock Value

An estimate of your stock value as at the year end. This can be a headache as you may have a warehouse full of stock, but even if you can say that you only keep a weeks’ worth of stock it’s a good starting point.

Mileage

If you trade through a Limited Company, then keep a log of any business mileage that you do. Keep in mind that business mileage is not just driving to work every day; it includes trips to courses, to see your accountant, to the post office, it all counts.

Picture includes a graphic of an end of year accounts checklist, a computer screen, keyboard and a mobile phone.

Use this checklist to organise your end of year accounts

Use this checklist to organise your end of year accounts

Include it all

Our basic advice is this, don’t overlook any piece of information, instead dig out your fine-tooth comb and go through every little detail. It may seem like a hassle but omitting even the smallest amount could add money to your overall tax bill. It really is worth the added search.

Make your accounting process easier

If you find it all too overwhelming, then let Boffix do it for you. We can handle all of your bookkeeping. So, when the time comes to submit your end of year accounts, all we need from you is the value of stock. We will close your end of year accounts, open your new books for a fresh year leaving you to focus on other areas of your business, like making sales. It really couldn’t be much simpler than that.

 

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