How to Prepare for Your First Year-End Accounts
Ah, year-end accounts — the phrase alone is enough to make new business owners either reach for a calculator or quietly panic. But fear not. Like many grown-up things (mortgages, MOTs, doing your own washing), it sounds scarier than it is.
This guide is here to help you prep for your first year-end accounts in the UK, minus the jargon. We’ll cover what they are, what you’ll need, and how to get through it without pulling your hair out.
What Are Year-End Accounts?
Year-end accounts are a summary of your business’s financial activity over its accounting year. In the UK, these typically include:
- — A profit and loss statement
- — A balance sheet
- — Notes explaining your figures (if needed)
If you’re a limited company, you’ll submit these to Companies House and HMRC. If you’re a sole trader, you won’t need to submit accounts in the same format, but you’ll still need clear records for your Self Assessment.
When Is Your Year-End?
For most UK businesses, your year-end is the anniversary of when you started trading or registered your company. Many align this with the tax year (5 April) for simplicity, but you can choose another date.
Your Year-End Accounting Checklist (UK)
Here’s a step-by-step checklist to get your books in order:
1. Reconcile Your Bank Accounts
Make sure every transaction matches your records. That means no rogue charges, duplicates, or “mystery payments.”
2. Issue and Record All Invoices
Send any outstanding invoices and make sure all income is logged. If you use cloud accounting software, you’re ahead already.
3. Log All Business Expenses
Include receipts, bills, mileage logs — anything you’ve paid to keep your business running. (Need help? See our Bookkeeping Guide)
4. Check Payroll and Pension Contributions
If you have staff, make sure all PAYE and pension payments are up to date and reported.
5. Calculate Depreciation
Have assets like laptops or machinery? Your accountant will factor in depreciation over time.
6. Review VAT (if registered)
Double-check you’ve submitted all returns and paid any amounts owed.
7. Speak to Your Accountant
Ideally, well before your deadline. A good accountant will spot issues early and help you maximise legitimate tax relief.
Software That Makes It Easier
Using tools like Xero, QuickBooks, or FreeAgent helps automate the bulk of your bookkeeping. These platforms generate reports, track invoices, and integrate with your bank accounts.
Common Pitfalls to Avoid
- — Leaving it too late — give yourself at least 4–6 weeks.
- — Mixing personal and business finances — it makes everything harder.
- — Forgetting to include cash transactions — yes, even that fiver.
- — Guessing — always check your records or speak to an accountant.
Don’t Just Survive It — Learn from It
Your first year-end accounts aren’t just a box to tick. They show you what worked, what didn’t, and where your business is heading. Treat it as a learning moment, not just a compliance chore. Need help? Hyams Group Ltd works with small businesses and start-ups across the UK to make year-end stress-free.
