A practical checklist for the period between Christmas and your year-end. Three things we ask every owner-managed client to do in the weeks before year-end. None of it is complicated, but it's often left until it's too late.
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Reconcile the bank.
Before year-end, make sure the bank reconciliation is up-to-date. Not roughly. Exactly. Every transaction matched, every difference understood. If something doesn't reconcile, find out why before the year closes, not afterwards.
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Deal with the directors' loan account.
If you've taken money out of the business during the year that hasn't been formally classified - as salary, dividend, or expense - it's sitting on the director's loan account. Year-end is the moment to decide what it is. Leaving it for the accountant to sort out later usually costs more than dealing with it now.
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Think about timing.
Some decisions are easier before year-end than after. Equipment purchases that qualify for capital allowances. Dividend declarations that move income between tax years. Pension contributions. The list is small but the timing matters.
We send a more detailed version of this checklist to every client a month before their year-end. If you'd like us to talk you through any of the above before yours, the first conversation is free.