Year-end always seems to creep up faster than expected. One minute you are focused on day to day tasks, and the next you are staring at the calendar wondering how on earth it’s already time to wrap up the books – particularly if you have a Dec 31st year end date.
If you are the one responsible for the numbers, you’ll most likely be feeling a very specific kind of pressure too; one where you want to close the year properly so you can start the new year with your best foot forward.
If you don’t want to spend January untangling a mess (which we assume you don’t), here is a simple 5 step checklist that will help you close the year smoothly.
1. Run your core reports and check for anything odd
Start with the basics. Run your Profit and Loss, Balance Sheet, and Cash Flow statements. These three reports give you a clear picture of the year and show you whether anything looks off. For example, negative balances where they shouldn’t be, unusually high expense categories, or income that looks too low for the period. These small flags usually point to missing receipts, duplicated entries, or transactions that were posted in a hurry and need tidying.
If what we have written has triggered some head scratching then give us a call. We can run these reports for you and give you a check list of stuff that needs to be done or we can do for you.
Jenner’s tip: Fixing these now saves a lot of back and forth when we are starting to process your Year End Accounts.
2. Reconcile every account
Reconciliation sounds tedious, but it is the backbone of accurate financials. At year-end, go through your bank accounts, credit cards, loan statements, and payment platforms and match them against your bookkeeping records. While your software should match the real-world numbers exactly, if it doesn’t and there is a difference, correct it. Most of the time it’s something simple like a duplicated transaction, manual entry that never cleared, or a bank feed error.
If this sounds tedious or boring (which we agree it is), how about letting us do your bookkeeping monthly and we will do this for you throughout the year. You’ll always then have an up-to-date picture of exactly how much you can spend from your bank accounts.
Jenner’s tip: The numbers need to agree, not “roughly match” or “look about right”.
3. Bring payables and receivables up to date
This is the step that business owners skip the most. Why? We don’t really know. But what we do know, is how to make it as easy as possible for yourself. Start by checking that every supplier invoice is either paid or correctly sitting in accounts payable. If you owe money, it needs to be recorded as such. Then look at your receivables and make sure every customer payment has been matched to the right invoice and chase anything outstanding.
Jenner’s tip: While you’re there, review your year end adjustments, like accruals and depreciation. These make a big difference to your final numbers and ensure your reports reflect the reality of the year, not just what happened to be recorded.
4. Do a proper inventory count
If you hold stock, you need to count it. (And yes, we mean a real, physical count, not “what the system says” or “roughly how much is on the shelf”). When you run your physical count, compare it against what your bookkeeping software thinks you have and adjust anything that’s off. This matters because inventory numbers feed directly into your Cost of Goods Sold calculation, which affects your taxable profit.
Jenner’s tip: Make sure to also record items that are damaged, expired, or no longer sellable. They all need to be recorded so your numbers reflect reality.
5. Prepare all compliance information early
This part doesn’t take long, but it saves a huge amount of stress. Before you hand anything to your accountant, make sure all employee is correct, payroll summaries are complete, The cleaner this is, the smoother your Your End Accounts process will be.
Jenner’s tip: When things are missing, everything slows down and it takes much longer for us to do your Year End Accounts and help you understand your corporation tax liability.
Need help with your year-end bookkeeping?
If you follow these five steps, your year end will feel far more controlled and far less chaotic. But if you have been reading this article and thinking we are talking in double dutch, then it’s time for you to handover your bookkeeping work to us. We’ll ensure that your financial processes run smoothly leaving you free to focus on what you do best – running your business and servicing your customers and clients.
Frequently Asked Questions: Year-End Bookkeeping
What is year-end bookkeeping?
Year-end bookkeeping is the process of checking, reconciling, and finalising your financial records before your year end accounts are prepared. It ensures your income, expenses, assets, liabilities, and tax position are accurate before submission to HMRC and Companies House.
When should I start preparing my bookkeeping for year end?
Ideally, you should start preparing at least 4–6 weeks before your year end date. Leaving everything until January often leads to rushed corrections, missing information, and delays in completing your year end accounts.
Do I need to do year-end bookkeeping if I use accounting software like Xero or QuickBooks?
Yes. Accounting software helps, but it doesn’t replace proper year-end checks. Bank feeds can fail, transactions can be mis-categorised, and adjustments like accruals, depreciation, and inventory still need to be reviewed manually.
What happens if my books aren’t tidy at year end?
Untidy books usually mean:
- Delays in preparing your year end accounts
- More questions and back-and-forth
- Higher accountancy fees due to extra corrective work
- Increased risk of errors in your tax calculations
Fixing issues early saves time, stress, and money.
Do sole traders and limited companies need to follow the same year-end bookkeeping process?
The principles are the same, but the requirements differ.
Limited companies must prepare statutory accounts and calculate corporation tax, while sole traders focus on income, expenses, and Self Assessment. Either way, accurate bookkeeping at year end is essential.
What records do I need to give my accountant for year-end accounts?
Typically, your accountant will need:
- Final bank and loan reconciliations
- Payroll summaries and employee details
- VAT returns (if registered)
- Aged debtors and creditors reports
- Inventory figures (if applicable)
- Details of assets, accruals, and depreciation
The cleaner this information is, the faster your accounts can be completed.
Can my accountant do my year-end bookkeeping for me?
Yes. Many businesses choose to outsource their bookkeeping entirely. At Jenner’s, we can handle your bookkeeping monthly or review and tidy everything at year end, ensuring your accounts are accurate and stress-free.
Why is reconciling accounts so important at year end?
Reconciliation confirms that your bookkeeping records match real-world balances. If figures don’t agree, your financial statements and tax calculations may be wrong which can lead to issues later.
How can I avoid year-end bookkeeping stress in future?
The simplest solution is regular bookkeeping throughout the year. Monthly reconciliations, up-to-date records, and periodic reviews mean year end becomes a straightforward process instead of a panic.
Need help getting your books year-end ready?
Year-end bookkeeping doesn’t need to be stressful or time-consuming. With the right support in place, your numbers can be accurate, compliant, and ready without the January scramble.
At Jenner’s Tax & Business Advisers, we work with business owners across the UK to keep their bookkeeping tidy, their year-end accounts on track, and their tax position clearly understood.
📞 Call us on 01432 379988 or get in touch via our Contact Us page to find out how we can support you whether you need a year-end tidy-up or ongoing bookkeeping throughout the year.