Preparing for year end: A checklist for limited companies

For many owner-managed businesses, preparing for year end often collides with holidays, supplier slowdowns and a full inbox. That’s when tidy records, clear roles and a repeatable plan turn a stressful rush into a steady finish. As a family-run practice, we prefer to keep things practical and people-first. We get to know how your business runs, then build the plan around it. Preparing for year end early gives you time to decide on dividends and bonuses, smooth cashflow and avoid penalties. It also reduces the back-and-forth that can delay sign-off. Companies must file annual accounts with Companies House within nine months of their year end and pay corporation tax nine months and one day after the corporation tax period ends – miss those and costs mount quickly. 

This article outlines a straightforward checklist for preparing for year end. Use it with your bookkeeper, payroll lead and us, so everyone is aligned on who does what and when. You’ll find simple steps, a few date reminders and the records that speed things up. We’ve also added where we fit in, so you can see how we help keep things moving without drama.

Preparing for year end: What to do first

Start early. Aim to complete these tasks in the last month of your financial year and the first two weeks after.

• Sales ledger review: Identify bad and doubtful debts – agree write-offs and provide for aged items.
• Purchases ledger review: Capture missing invoices – request supplier statements to close gaps.
• Bank and cash: Reconcile all accounts – include credit cards, merchant accounts and online wallets.
• Stock and work in progress (WIP): Count, value and document – perform a stocktake and record write-downs with evidence.
• Fixed assets: Update the register – record disposals and add new items with invoices and delivery notes.
• Accruals and prepayments: Post year-end adjustments – spread annual costs and accrue known liabilities.
• Payroll: Confirm bonuses and benefits – align awards with Real Time Information (RTI) reporting and P11D treatment.
• Directors’ loans: Check section 455 exposure – agree repayments or dividends before deadlines.

Core deadlines and responsibilities

Map these dates from your accounting reference date and assign each to a named person.

• Corporation tax: Pay by nine months and one day – most small companies pay within this window; file the company tax return within 12 months of period end.
• Companies House accounts: File within nine months – private companies have nine months to submit accounts after year end. Late filing penalties apply on a sliding scale. 
• VAT: Submit and pay on time – standard quarters are due one month and seven days after period end.
• Confirmation statement: File within 14 days – keep shareholder and people with significant control (PSC) information up to date.

Shared calendars and a simple sign-off chain keep these on track.

Records that speed everything up

Good evidence makes for a smooth close and fewer queries.

• Bank statements: Provide full PDF statements – include all current, deposit and loan accounts.
• Contracts: Share key agreements – leases, hire purchase, software as a service (SaaS) subscriptions, maintenance and loan documents.
• Grants and finance: Collate offer letters and covenants – we’ll check conditions and disclosures.
• Payroll and staff costs: Reconcile to RTI – ensure gross-to-net reports tie to the ledger.
• Intercompany: Agree balances in writing – confirm both sides for elimination on consolidation.
• Legal changes: Notify director and share changes – include minutes or written resolutions.
• Dividends: Prepare minutes and vouchers – pay from distributable reserves with paperwork in place.

Tax points to consider before the year closes

A few targeted actions can improve cashflow and reduce risk.

• Capital allowances: Time purchases thoughtfully – bringing forward qualifying spend can accelerate relief.
• Bad debt relief (VAT): Review overdue invoices – consider relief where invoices are over six months old and written off in your VAT records.
• Bonuses: Approve before year end – if properly authorised and paid within nine months, you may secure a deduction in the current period.
• R&D and creative reliefs: Gather evidence early – maintain project logs, cost breakdowns and technical narratives.
• Forecasting: Project the corporation tax bill – decide if a voluntary payment suits your cash position.

Preparing for year end with your accountant

The most efficient close is collaborative. Here’s how we typically run it with clients.

• Kick-off call: Agree dates and responsibilities – set a realistic timetable, including approvals.
• Working papers: Use our standard pack – consistent schedules reduce queries and re-work.
• Quarterly pre-close review: Fix issues early – tidy reconciliations and correct postings ahead of time.
• Audit and assurance: Plan access and evidence – if you’re audited, we coordinate to avoid duplication.
• Final sign-off: Share drafts for review – you’ll see draft accounts, corporation tax computation and Companies House version with clear notes.

You can see what we cover on our services page, or explore our VAT support. Prefer to talk it through? Contact us and we’ll walk you through the process.

Common pitfalls we help clients avoid

We keep an eye on these frequent snags.

• Cut-off errors: Recognise revenue and costs correctly – year-end weeks need care.
• Director expenses: Keep receipts and policies – personal costs through the company need the right treatment.
• Leases: Classify under the right standard – ensure calculations and disclosures are current.
• Deferred tax: Don’t ignore timing differences – even small balances matter for a true and fair view.
• Company secretarial: File changes promptly – officer updates, share allotments and PSC changes.

A steady plan for a tidy finish

Preparing for year end is about rhythm and routine. Start early, assign clear roles and keep your evidence in order. That’s how you file accurate accounts on time and keep your corporation tax position clear. It also helps cashflow planning at a time when many businesses are focused on discipline: business creations fell to 65,450 in Quarter 4 2024, the lowest since the quarterly series began in 2017, a reminder that strong internal controls matter when conditions tighten (ONS, 2025). 

If you’d like help preparing for year end, we’re ready to support you with pre-close reviews, working papers, accounts and tax filing. Tell us where you are in the cycle and we’ll tailor a plan that fits your timelines and how your team works. Contact us and we’ll take it from there.