Year-End Accounting Checklist for Small Businesses

Why Year-End Preparation Matters

Proper year-end preparation ensures accurate financial reporting, tax compliance, and sets your business up for success in the coming year.

Financial Records Review

Start by reviewing all your financial records:

• Bank statements and reconciliations
• Credit card statements
• Petty cash records
• Investment account statements

Accounts Receivable and Payable

Ensure all outstanding amounts are properly recorded:

• Follow up on overdue invoices
• Review aged debtors report
• Confirm all supplier invoices are recorded
• Check for any disputed amounts

Inventory Management

If you hold stock, conduct a thorough inventory check:

• Physical stock count
• Identify obsolete or damaged stock
• Update inventory valuations
• Review stock control procedures

Fixed Assets Review

Review your fixed assets register:

• Verify all assets are still owned and in use
• Calculate depreciation for the year
• Record any disposals or additions
• Consider impairment reviews

Expense Verification

Ensure all business expenses are properly documented:

• Review expense receipts and invoices
• Separate business and personal expenses
• Check for any missing documentation
• Verify expense classifications

Tax Planning Opportunities

Consider year-end tax planning strategies:

• Timing of income and expenses
• Capital allowances claims
• Pension contributions
• Charitable donations

Preparing for Next Year

Use year-end as an opportunity to improve:

• Review and update accounting procedures
• Set budgets and forecasts for the new year
• Plan for any system upgrades
• Schedule regular financial reviews