Year-end finance checklist

Why a year-end routine pays off

A tidy year end does more than keep your accountant happy. Clean, current records are exactly what a lender wants to see, so a company that closes its year well is also a company that can borrow more easily if it needs to. Work through the steps below in the weeks around your year end. This is general information, not advice on your specific accounts.

Tidy the books

Reconcile the bank, chase or write off old debtors, clear supplier queries, and make sure every transaction is categorised. Tighten credit control so unpaid invoices do not roll into the new year. Pull your management accounts together — see how to prepare management accounts if you are not sure where to start.

Plan cash for tax

Year end and tax bills travel together. Map out when Corporation Tax, any VAT, and PAYE fall due, and check the cash will be there. If a bill clashes with a quiet month, plan the bridge early rather than scrambling — see using finance to pay a tax bill. Size the liabilities with the VAT calculator.

Set up the year ahead

Build a fresh 12-month forecast with the cash flow forecast template, set a budget, and decide whether you will need working capital for the peaks you can already see coming. Lining up a facility before you need it beats arranging finance in a crunch.

Review your funding

Finally, look back at any borrowing from the past year: did it do its job, and is the structure still right? If you are carrying several facilities, ask whether consolidating would simplify things — the debt consolidation calculator helps — and read how to refinance business debt.