Our Blog page banner

Five essentials for year-end accounting

Five essentials for year-end accounting

With only a month left of the 2014/15 tax year, many business owners will be thinking about preparing their accounts for their year-end accounting dates.

With this in mind, here are the most important things you need to do ahead of filing your annual accounts:

Make sure you have all the paperwork
Paper is the nuts and bolts of your accounts, and without it they are not going to look credible. As far as HMRC is concerned, the proof is in the paperwork so they are going to want to see all your receipts, statements and payment information.

Chase up your debts
Try and chase up as many outstanding invoices as possible. If your business has too many overdue invoices, your accounts will not be as accurate as you would necessarily want them to be. Doing this will also mean more money in your bank account and allow you to write off any debt that can't be repaid.

Bank reconciliations
Bank reconciliations are also important to maintain accurate accounts. The process of bank reconciliation involves making sure that your bank records match up with your books. To solve any discrepancies you'll need to give your bank information about payments in and out of your account using a bank reconciliation statement.

Sort out your expenses
Make sure you have records of all your non-taxable expenses for the maximum possible reduction of your corporation tax bill. Non-taxable expenses include travel and subsistence costs, benefits in kind for employees, premises costs and professional charges.

Use your 2014/15 reliefs and allowances
Most business owners want to limit their tax and you should be no exception. Make sure you've taken advantage of all the available tax reliefs and allowances for the 2014/15.

Read our Year-end Tax Guide 2014/15 for more detailed information and planning tips, or speak to an adviser about tax-efficient profit extraction techniques.

We can help

Using Knight and Company to prepare your annual accounts is a quick and painless experience. Our expert accountants can prepare your financial statements and make sure they are filed on time at Companies House.

Contact us on 01628 631056 or email geoffk@knightandcompany.co.uk to discuss preparing your year-end accounts.