Completing the Year End Accounts for Your Business
It is important to remember that the more you can do before handing over to your accountant the less money it is going to cost you. You really should have discussed with your accountant when hiring who was going to do what, how the information is going to be supplied etc. Each accountant and business is different so you need to have a chat early on in your working relationship to erradicate any misunderstandings and to have a schedule of when you need to supply your accountant with the necessary information.
The following are some simple things that you can do to help your accountant and reduce your costs. It is not essential and some may not be relevant to you.
Filing your invoices, bank statements, loan agreements etc in a way that the items can be easily found.
Adding up and balancing your books either manually or via your accountant software..
Analysing your payments and receipts – noting any items you wish your accountant to pay particular attention to.
Completing a bank reconciliation (or several through the year) that reconciles the balance on your bank statements. Only complete this task if you feel confident to do so.
This is a non exhaustive list of information and documentation to provide your accountant. Again some of the items may not be relevant to your business and this should have been discussed already with your accountant. Make sure you provide a years worth of each.
- A back up or accountants copy of your accounts software for the year if you use a software package
- A list of debtors at the year end and how long they have been outstanding
- A list of fixed assets as well as any additions with copy purchase invoices provided.
- A list of trade creditors at the year end and their age.
- A year end stock list. Details of work in progress at the year end.
- Any ledgers that you keep.
- Bank statements.
- Cheque books and paying in stubs.
- Copies of any new loan or HP agreements taken out during the year.
- Copies of VAT returns covering the year together with any workings.
- Details of any business income or expenditure that didn’t go through your business bank account.
- Details of PAYE owed at the year end.
- Details of VAT owed at the year end.
- Petty cash records.
- Purchase invoices.
- Purchase ledger control account reconciliation.
- Reconciliations for all bank and cash accounts.
- Sales and purchase day books.
- Sales invoices.
- Sales ledger control account reconciliation.
- Your cash book.
- Your payroll records for the year together with details of PAYE calculations for payments to the Inland Revenue.
- Anything else you feel may be relevant – if in doubt include it.
Make sure you bundle and label the items clearly so your accountant can find and review them easily. Remember the more the accountant has to do the more it is likely to cost you!
