As a business owner it is hugely helpful to get your year end accounts completed as early as possible after the year end. It enables you to have an earlier final position and view on last years’ accounts and it also enables you to be aware well in advance of any tax you may need to pay.
As bookkeepers, we often see businesses and accountants in a rushed process up against deadlines and this isn’t great for anyone. You also hear too many stories of businesses and individuals being surprised by their tax bills.
So what can you do, as a business owner, to have more control over this and to get your year end accounts and tax calculations earlier? Here are just a few ideas;
- Engage an accountant that is pro-active and committed to completing your accounts as soon as possible following the year end. When you engage them, make them aware of what your requirements are.
- Make sure you know exactly what your accountant needs from you to provide this service for you and start collating this information through the year rather than leaving it to the end.
- If you have an outsourced bookkeeper or a member of your staff handling the bookkeeping process, make them aware of your expectations regarding year end and work with them to finalise the bookkeeping for the year and to put together the information needed for the accountant.
- Have information ready that you know they are likely to ask for – for example;
- Your full bookkeeping records or access to your accounting software to extract your information. This should be fully complete and reconciled to a good standard.
- Outstanding debtors and creditors at year end
- Bank & credit card statements – they usually want all your bank statements for the year or the one which shows the balance at the financial year end
- Payroll reports
- Summary of director’s loan account and confirmation of your agreement to this.
- Lease agreements
- Details of a new fixed assets purchased and any assets you have disposed of
- Explanation and detail of anything unusual in your accounts this year that you anticipate they will ask about
- If you have a bookkeeper, ask them to do their own set of year end checks before the accountant starts work on the year end. This will tidy up any loose ends and minimise queries needing to be asked by the accountant.
- When handing over for the accountant to work, just check they have everything they need and ask them when they expect to have them finished.
- Follow up and arrange a meeting with your accountant to finalise your accounts
If, on reading and reviewing this list, you realise that perhaps you want to consider your current bookkeeping or accountancy arrangements, you are more than welcome to contact us at The Bookkeeping Department for a chat. Tel: 01462 455455 www.thebookkeepingdepartment.co.uk