A missed receipt, an unreconciled bank payment or a director’s loan that has quietly grown over the year can turn a routine filing into a stressful last-minute exercise. This year end accounts checklist for startups is designed to help founders get organised early, understand what their accountant needs and keep statutory deadlines under control.
For a young business, year end is more than a compliance task. It is a useful moment to check whether the numbers reflect how the business is really performing, whether tax provisions are realistic, and whether the records will stand up to scrutiny. The goal is not to become an accountant overnight. It is to give your accountant complete, accurate information so they can prepare accounts efficiently and advise you properly.
Start with the dates that apply to your company
Your accounting reference date determines the period covered by your statutory accounts. For most private limited companies, accounts must reach Companies House within nine months of the financial year end. Corporation Tax is normally payable nine months and one day after the end of the accounting period, while the Company Tax Return is generally due 12 months after that period ends.
These deadlines are related, but they are not the same. Treating them as one date is a common and costly mistake. Late filing penalties from Companies House can apply even where the company owes little or no tax, while late Corporation Tax payments can attract interest.
If this is your first set of accounts, the deadlines may differ. A newly incorporated company can have a longer first accounting period, although the deadline for filing its first accounts is usually 21 months after incorporation. Confirm the dates early, particularly if you have changed your year end or plan to do so.
Bring the bookkeeping up to date
Year-end accounts are only as reliable as the records beneath them. Before the year end work begins, make sure all business transactions for the period have been recorded and that you can explain anything unusual.
Reconcile every business bank account
Match your accounting records to the closing balance on each business bank, savings, deposit and currency account. Include payment providers such as Stripe, PayPal or SumUp, as well as any business credit cards. Small balances held in payment platforms are easy to overlook, but they still form part of the company’s financial position.
Investigate transactions that remain unreconciled rather than forcing them into a category. They may be duplicate entries, personal expenditure, transfers between accounts or payments that belong in another period.
Gather sales and expense evidence
Make sure sales invoices are recorded in the correct period, including invoices raised shortly after year end for work completed before it. Review unpaid customer invoices too. If an amount is unlikely to be collected, tell your accountant so that potential bad debts can be considered.
For expenses, retain receipts, supplier invoices and evidence of the business purpose. Digital copies are normally fine, provided they are legible and accessible. Where a director has paid a company cost personally, record it correctly rather than leaving it outside the books.
It is worth checking recurring costs in particular. Software subscriptions, insurance, rent, professional fees and loan repayments are often posted automatically but not always coded correctly. A loan repayment, for example, may include both capital and interest, which receive different accounting and tax treatment.
Check the balances that need a closer look
Some year-end figures require judgement rather than simple data entry. Raising them with your accountant before the accounts are drafted avoids surprises later.
Stock, work in progress and deposits
If you hold physical stock, carry out a count close to the year end and keep a record of the result. Stock should be valued carefully, particularly where goods are damaged, obsolete or slow moving. Do not assume that the purchase price is always the correct year-end value.
Service businesses may need to consider work in progress: work completed but not yet invoiced. The treatment depends on your contracts, invoicing arrangements and the stage of the work. Customer deposits and advance payments also need review, as money received is not always income for the current accounting period.
Equipment and other fixed assets
Provide a list of significant items bought, sold or disposed of during the year, such as laptops, machinery, vehicles, office equipment and furniture. Include purchase invoices and finance agreements where relevant.
Your accountant will consider depreciation in the accounts and whether capital allowances may be claimed for tax. These are separate calculations, so do not rely on the depreciation figure alone when estimating Corporation Tax.
Loans, finance and director transactions
Prepare statements for business loans, hire purchase agreements, overdrafts and other finance. The closing balance is not the only useful figure: interest, repayments, security and the repayment timetable may all matter.
Director’s loan accounts deserve particular care. They track money a director owes the company or money the company owes the director. A balance can arise from personal expenses paid by the company, business expenses paid personally, salary, dividends or funds introduced into the business. An overdrawn director’s loan account may have tax consequences, so it should never be left unexplained at year end.
Review payroll, VAT and taxes already filed
Your accounts should agree with the compliance returns submitted during the year, or any differences should be understood. Reconcile payroll costs to the payroll reports, including wages, employer National Insurance and pension contributions. Check that all PAYE payments have been made and that any year-end payroll reporting has been planned.
If the company is VAT registered, reconcile VAT control accounts to submitted returns and identify any VAT due or repayable at year end. This is especially useful for startups using the cash accounting scheme, dealing with overseas transactions or operating partially exempt activities, where the accounting and VAT timing can differ.
Also provide copies of Corporation Tax returns, VAT returns and PAYE records where your accountant does not already manage them. A full picture prevents duplicated work and helps identify errors before they become harder to correct.
Record dividends properly
Dividends are not simply withdrawals from the company bank account. They can only be paid from available distributable profits, and they should be supported by appropriate paperwork, including dividend vouchers and board minutes where required.
Review all payments made to shareholders and distinguish dividends from salary, expense reimbursements and loan movements. If the company has made losses, paid substantial dividends or has limited cash, seek advice before finalising the accounts. The right treatment depends on the facts, and early advice is far easier than correcting an invalid payment later.
Prepare the information your accountant will ask for
A tidy year-end pack reduces queries and leaves more time for useful discussion. Alongside bookkeeping access and bank statements, provide details of major contracts, leases, legal claims, grants, investments, new share issues and any significant events after the year end.
You should also flag transactions with directors, family members or other connected parties. These may require disclosure in the accounts, even when the arrangement is entirely legitimate. Transparency is the sensible approach: your accountant cannot advise on information they have not seen.
For small companies, statutory accounts can often be prepared under simplified reporting rules. However, the company’s size, group structure, investors and lending arrangements can affect what is required. It is better not to assume that the shortest possible accounts are automatically the right choice.
Use the year end to ask better business questions
Once the records are complete, look beyond the filing obligation. Compare turnover, gross margin, overheads and cash movement with the previous year and with your budget. If profit has increased but cash is tight, unpaid invoices, stock levels, loan repayments or VAT timing may be part of the explanation.
This is also a sensible time to review whether your bookkeeping system, payroll process and management reporting still suit the business. A startup with a handful of transactions has different needs from one taking on staff, registering for VAT or seeking finance. Cloud accounting can make the record-keeping easier, but it still needs regular review and clear processes.
Coombs Chartered Accountants works with founders who want year-end accounts explained in plain English, alongside practical guidance for the year ahead. Getting the records in order early gives you more than a smoother filing process: it gives you the confidence to make decisions from numbers you can trust.
