As the end of the financial year approaches, UK small business owners face the important task of wrapping up their accounts and preparing for tax season. Getting your books in order early not only keeps you compliant with HMRC but also gives you a clear picture of your business’s financial health. 

At East London Accountants, we support small businesses, freelancers, and landlords across London with year-end accounting. This checklist will help you close the year smoothly and identify areas for tax efficiency. 

1. Reconcile Your Bank Accounts 

Ensure your bank statements match your accounting software records. Review all: 

• Business current accounts 
• Credit card accounts 
• PayPal or online payment processors 

Investigate any discrepancies and correct them before closing your books. 

2. Chase Outstanding Invoices 

Review your accounts receivable and follow up with clients who haven’t paid. This improves cash flow and ensures your income is accurately reported. 

Tip: Consider writing off bad debts if they’re not recoverable, but only after making reasonable attempts to collect. 

3. Log All Business Expenses 

Make sure you’ve recorded every allowable expense, including: 

• Office supplies 
• Utilities and rent 
• Travel and mileage 
• Subscriptions and software 
• Marketing and advertising 

Use cloud accounting tools like Xero, QuickBooks, or Sage to automate expense tracking. 

4. Review Payroll and Staff Costs 

Confirm that all wages, PAYE, and National Insurance contributions are correctly recorded. Prepare P60 forms for employees and ensure any bonuses or expenses are accounted for. 

5. Update Asset Depreciation 

Review your fixed asset register. Apply depreciation where necessary to: 

• Computers and equipment 
• Vehicles 
• Office furniture 

Speak to your accountant to determine the correct rates and methods. 

6. Check VAT Returns (if VAT Registered) 

Ensure your VAT returns are: 

• Submitted for all quarters 
• Matched with your accounts 
• Correctly reported in line with MTD (Making Tax Digital) 

Overpayments or underpayments should be adjusted promptly. 

7. Prepare Year-End Adjustments 

Work with your accountant to process: 

• Accruals and prepayments 
• Director’s loans 
• Stock or inventory valuations 
• Dividend declarations 

These adjustments ensure an accurate representation of your financial position. 

8. Back Up and Secure Financial Records 

Create a secure backup of all accounting data. Ensure files are: 

• Accessible if HMRC requests them 
• Protected from loss or corruption 
• Stored securely for at least 6 years 

Cloud systems are often best for secure and compliant backups. 

9. Review Business Performance 

Analyse key financial indicators: 

• Gross and net profit 
• Expenses vs income trends 
• Cash flow performance 

These insights help you set goals and budgets for the new financial year. 

10. Submit Year-End Accounts and Tax Returns 

If you're a sole trader: 

• Submit your Self-Assessment by 31 January 

If you’re a limited company: 

• File your Corporation Tax Return within 12 months of year-end 
• Submit your statutory accounts to Companies House within 9 months 

Filing early avoids last-minute stress and potential penalties. 

How East London Accountants Can Help 

We offer full year-end support, including: 

• Bookkeeping and bank reconciliation 
• VAT and PAYE checks 
• Year-end adjustments and final accounts 
• Corporation Tax and Self-Assessment filing 
• Tax-saving advice and forecasting 

With over 20 years of experience helping small businesses across London, we make your year-end process smooth, stress-free, and compliant. 

Book a Free Year-End Review 

Don’t leave your year-end to the last minute. Contact East London Accountants today to book a free review and make sure everything is in order for a successful start to your next financial year.