Running an SME in the United Kingdom means juggling a lot at once. Operations, clients, growth plans, and day-to-day financial decisions all demand attention. But as the financial year comes to a close, getting your accounts in order becomes essential. A well-managed year-end process is not just about avoiding penalties from HM Revenue and Customs or Companies House. It is also about gaining clarity on your business performance and preparing for a stronger, more informed year ahead.
At Asegun, we help small and medium-sized businesses make sense of their numbers. Below is a clear, practical checklist you can use to close your financial year with confidence.
What Your Year-End Accounts Should Include
If you operate as a limited company or any structure that requires formal reporting, your statutory year-end accounts usually include the following:
A Balance Sheet
This shows the financial position of your business by listing what you own, what you owe, and the overall value of the company.
A Profit and Loss Statement
These details include your income, expenses, and the net profit or loss for the year.
A Cash Flow Statement
While not always mandatory for smaller companies, it is an incredibly useful document that shows how money moves in and out of the business.
These documents form the foundation of your tax returns, your financial reporting, and your ability to plan for growth.
The Complete End-of-Year Checklist for UK SMEs
Use the checklist below to ensure your business closes the year properly and remains compliant.
1. Reconcile your bank accounts and payment records
Match every bank statement, card statement, and payment platform transaction with your accounting records. Investigate any discrepancies, such as missing invoices, double charges, or uncleared items.
Accurate reconciliation ensures that your accounting software reflects real activity in your business accounts.
2. Review sales, expenses, and purchases
Confirm that all sales invoices and receipts are recorded. Categorise every expense correctly.
Do not underestimate small receipts because they can significantly affect your taxable profit.
Remember to account for prepayments and accruals, such as insurance paid in advance or costs incurred but not yet invoiced.
3. Review outstanding debts
Check your list of customer invoices and follow up on overdue payments.
If there are debts you realistically cannot recover, consider writing them off.
Review all supplier invoices to make sure you have not missed anything you owe.
4. Review inventory or stock
If your business holds stock, carry out a physical stock count at the end of the year.
Adjust your figures for damaged, expired, or unsellable items.
Accurate stock valuation affects both your profit and your tax position.
5. Update fixed assets and calculate depreciation
Update your fixed asset register with equipment, machinery, computers, or furniture purchased during the year.
Record any disposals as well.
Apply the correct depreciation rates and explore whether you qualify for any capital allowances that can reduce your tax bill.
6. Finalise payroll, staff costs, and director payments
Ensure that salary records, pension contributions, PAYE, and National Insurance are accurate and up to date.
If you are a director of a limited company, record your salary, dividends, and any director loan transactions correctly.
7. Prepare your financial statements
Once all entries have been updated, generate your final Profit and Loss Statement and Balance Sheet.
A Cash Flow Statement can also help with planning and forecasting.
Review all statements carefully, and if possible, have an accountant cross-check the figures.
8. Meet all statutory and tax obligations
You must prepare and submit statutory accounts to Companies House.
You must also file your corporation tax return with HM Revenue and Customs.
If you are VAT registered, ensure your VAT returns are complete and submitted on time.
Keep all financial records in an organised form, as required by United Kingdom law.
Helpful Insights from Asegun
At Asegun, we encourage businesses to treat year-end as more than an administrative task. When handled properly, your accounts can become a powerful tool for growth.
Here are a few ways to get more value from the year-end process:
Use the year-end to identify trends
Your accounts can reveal your most profitable products or services, seasonal revenue patterns, and cost areas that can be improved.
Plan major purchases strategically.
If you plan to invest in new equipment or technology, the timing may influence your tax position.
Review pension and contribution strategies
Employer contributions can be tax-efficient when planned correctly.
Avoid last-minute pressure
A steady month-by-month bookkeeping routine makes year-end far easier.
Get professional support
A qualified accountant can help you avoid errors, catch missing deductions, and protect you from compliance issues.
Why Working with Asegun Matters
Asegun provides SMEs with clarity, confidence, and expert guidance.
We give business owners peace of mind by making sure their books are accurate, their tax position is optimised, and their deadlines are met without stress.
We also help businesses interpret their financial data so they can make better strategic decisions.
Final Thoughts
A smooth year-end is an investment in your business. When your accounts are accurate, organised, and insightful, you gain a clear picture of your performance and a strong foundation for the new financial year.
If you want to end your year with confidence and start the next one prepared, Asegun is ready to guide you every step of the way.
