If your year end is creeping up, it’s easy to put the accounts prep off until “next week”, then suddenly you’re chasing invoices, guessing mileage, and trying to remember what that mystery payment was for.
The good news is you don’t need a perfect system to get year-end ready. You just need a simple, repeatable tidy-up that makes your numbers clear and your accountant’s job straightforward. If you’re comparing accounting firms in Bristol, ask whether their Bristol accountant services include year-end checklists and proactive reviews, because those two things save the most time.
Step 1: Do a quick “finance hygiene” reset
Before you touch reports, get the basics in order. Ten minutes here prevents hours later.
- Confirm your bank feed is up to date and all transactions are imported
- File or forward missing purchase receipts and sales invoices
- Separate personal and business spending (even if it’s just tagging for now)
- Make sure your bookkeeping matches the bank balance
This is the point where many people discover they’ve been coding expenses inconsistently, which then skews your profit and makes tax planning harder. A short guide on month-end checklist essentials can help you spot the common gaps as you tidy things up, without turning it into a full-on project.
Step 2: Reconcile the “usual suspects” that trigger questions
Year-end queries tend to come from the same places, especially for small businesses and limited companies. Aim to reconcile these items early:
Director’s loan and personal expenses
If you’ve paid for business costs personally, or taken money out of the company, track it clearly. A muddled director’s loan account can create delays and unexpected tax implications.
Expenses that are easy to miss
Think: software subscriptions, small tools, parking, insurance renewals, client gifts, and home-working costs. If you use a card across multiple areas, add short notes now while you still remember.
VAT and payroll alignment
Even if the numbers “feel right”, year-end is when mismatches show up. Make sure your payroll reports agree with what’s been filed and that VAT returns reflect actual sales and purchases.
Step 3: Check your debtors and cash flow, not just the profit
A healthy profit does not always mean healthy cash. Before the deadline, get clear on what’s owed to you and what you owe. Review unpaid invoices, set a simple follow-up schedule, confirm any large customer credits or refunds are recorded correctly, and check supplier balances for duplicates or missing bills.
If you want a quick reality check, focus on your aged receivables report and your next 30 days of commitments. A practical explainer on encouraging customers to pay can help you tighten the process without damaging relationships.
Step 4: Build a “year-end pack” your accountant can work from
This is where you make life easy for yourself. Create one folder (or shared drive) with bank statements for the period, key contracts or finance agreements, asset purchases (laptops, equipment, vehicles), any grants or one-off income, and short notes on unusual transactions or business changes.
Even a one-page summary of “what changed this year” is hugely helpful, especially if you’ve hired staff, changed pricing, moved premises, or started selling a new service.
Step 5: Lock in two habits so next year is painless
Once you’re over the line, keep it light but consistent: a 15-minute weekly receipt tidy-up and a monthly mini-review of bank reconciliation and unpaid invoices.
That’s it. You don’t need to overhaul your entire system, just keep the basics clean so year-end becomes a tidy review rather than a stressful rebuild.