Image by Nick Morrison

Are you prepared for your year end?

With year end approaching for lots of businesses, are you ready and prepared?

Read below to find out more about our top tips on getting prepared....

March and April represent the most common financial year ends, which means that many people will soon be reaching the end of their accounting and tax year.

It’s worth having a conversation with your accountant at this point to determine whether there are any planning points to consider. It’s always easier to identify opportunities at this stage. Not much can be done retrospectively.

When it comes to handing over your records to your accountant, there are a few things you can do to make their life easier and likely reduce your fees.

If you use software to maintain your records…

-    Ensure that any opening balance adjustments from the previous year have been posted (eg removing last year’s dividends, drawings, profits etc). Your accountant should provide you with these adjustments and will help you to post them after they have prepared your accounts. This also means your ongoing financial information is more accurate.

-    Run your trial balance and look for anything unusual – expense codes with negative balances, things posted to the wrong place.

-    Ensure there is adequate narrative on your postings and that you are consistent with where things are posted.

-    Are there any old debtors or creditors which need writing off? Make a list and highlight these to your accountant.

If you maintain a cash book…

-    Whether it’s a spreadsheet or a manual cash book, ensure it’s complete and includes adequate detail of what each transaction is. Ideally, it should mirror the business bank account.

-    If you keep a spreadsheet, an electronic copy is always easier for your accountant to work from than printed copies.

However your maintain your records…

-    Make a note of any stock (at cost) or work in progress at the year end.

-    Collate copies of bank statements for each account, including loan accounts.

-    Copy invoices for any assets you have purchased during the year.

-    Collate your wages records and VAT return submissions for the year (as appropriate) and provide copies.

-    Make a note of any expenses you have paid for personally which aren’t reflected in your records.

Most importantly, ensure your accountant has your information in a timely manner so that you can plan for any tax payments due and receive proactive assistance for the forthcoming year. 

Please get in touch if you require any further information or assistance with year end.

Disclaimer: The information contained in this article is intended to be a guide and is not intended to be exhaustive. No action should be taken on the basis of information contained herein without obtaining the necessary advice. No responsibility can be accepted for loss or damages occasioned to any person acting or refraining from acting as a result of the material contained herein.