Get ahead of the game with your year-end accounts
If you're preparing your year-end accounts, it's worth having a checklist in place for the kind of information your accountant will need. Here are the SIX things you should try to resolve before setting everything in motion, writes James Tarr from our accounts and audit department.
Some small business owners leave pretty much everything related to the filing of accounts to their professional advisers, for understandable reasons. And with the transparency of cloud-based platforms such as Xero, Sage or QuickBooks, it's easy for your accountant to find a lot of the information they need. Nevertheless, the more you can do in advance to make the process smoother, the easier it is for everyone! Here are half a dozen top tips – particularly if you haven't fully made the transition to the cloud.
- Gather together any relevant financial records
It's important to find all your bank statements, invoices and receipts, along with credit card statements and payroll records. These are the building blocks that allow you to check that everything has been properly accounted for.
- Reconcile your records
Make sure your bank statements and credit card statements have been reconciled – in other words, check that your accounting software or spreadsheets match the details that appear on your bank account. Discrepancies are messy and can be time-consuming to track down at a later stage.
- Review accounts payable and receivable
If there are outstanding invoices and you've yet to receive payment, this might be a good time to chase them up. Equally, you should be making sure that all your suppliers have received the payment that's due for their work. This makes the year-end process a lot neater and tidier.
- Take stock
If you're in a business that carries inventory, this is a good moment to undertake a physical check on stock and ensure that it matches up with your records. You'll then be in a position to assess the value of what you own – taking account of obsolescence and provisions.
- Consider your fixed assets
If you keep a register of fixed assets, now is the time to review it. Again, it provides an opportunity for calculation and recording of depreciation as well as any assets you have sold or scrapped.
- Think about tax
Are you completely up to date with your VAT payments? Have they been properly filed and then reconciled in your accountancy software? You can also start planning for your next corporation tax bill and ensuring any deductions and allowances are properly applied. Make sure you have enough money stored away to pay your expected tax bill once it is due.
If you'd like support and advice on the process, all it takes is an email or quick call. You can contact Page Kirk at enquiries@pagekirk.co.uk or by phone on 0115 955 5500.
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The Page Kirk team is committed to providing content that adheres the highest standards for accuracy. We evaluate how the content of each article aligns with current financial procedures and standards. Therefore, the information presented in this article is accurate and up-to-date.