As the year wraps up, preparing accurate and complete year-end accounts is more than just a legal requirement — it’s an opportunity to assess your financial position, plan future strategies, and present your business in the best possible light.
At Thomas Nock Martin, we support businesses every day in delivering accounts that are not only compliant but also strategically insightful.
Here’s our expert year-end accounts checklist to make sure you don’t miss a thing.
1. Income Statement (Profit & Loss)
This shows how your business has performed financially across the year. It includes:
- Revenue generated
- Cost of goods sold
- Gross profit and net profit
- Business operating expenses
- Any exceptional or one-off costs
The income statement helps identify trends and operational efficiency. It’s one of the first things lenders, investors, or HMRC will review.
2. Balance Sheet
Your balance sheet is a snapshot of your business’s financial health at the year-end. It should detail:
- Assets (cash, inventory, property, equipment)
- Liabilities (loans, overdrafts, payables)
- Shareholder equity (retained earnings, capital invested)
This statement supports both tax reporting and financial stability analysis.
3. Cash Flow Statement
Even profitable businesses can run into trouble if cash isn’t managed well. Your cash flow statement reveals how cash moves in and out of the business, split into:
- Operating activities
- Investing activities
- Financing activities
This helps stakeholders understand liquidity, which is key to risk management.
4. Adjustments and Accruals
To present a fair picture of your business, adjustments must be made for:
- Accrued expenses
- Prepaid income or services
- Inventory valuation
- Depreciation and amortisation
- Bad debt provisions
Getting these right ensures your profits aren’t overstated or understated — and keeps you compliant with accounting standards.
5. Tax and Compliance Documents
Include:
- Corporation tax estimate
- VAT reconciliations
- PAYE summaries
- Confirmation statements
- Companies House submissions
- Making Tax Digital (MTD) reports if applicable
Missing these can lead to penalties — and unnecessary stress.
6. Supporting Notes and Disclosures
Year-end accounts should explain key figures through notes that provide context, especially when:
- There have been changes in accounting treatment
- Certain values are significantly higher/lower than previous years
- Directors’ loans or large dividends were issued
These supporting notes build transparency and trust.
7. Director’s Report (For Limited Companies)
Though not always mandatory, a Director’s Report can strengthen your year-end submission. It typically includes:
- Commentary on financial results
- Strategic decisions or investments
- Risk management updates
- Future plans or forecasts
8. Inventory and Stock Valuation
If your business holds stock, your year-end accounts must reflect accurate stock values. This involves:
- Physical stocktaking
- Adjustments for obsolete/damaged stock
- Valuation using consistent methods (FIFO, LIFO, weighted average)
9. Fixed Asset Register
Review and update your fixed asset register to reflect:
- Additions and disposals
- Accurate depreciation
- Asset classifications (IT, plant, vehicles, etc.)
This ensures correct asset reporting and prevents overstatement of net worth.
10. Internal Review and Year-End Audit Preparation
Before finalising, conduct a full internal review. Check for:
- Duplicated entries
- Unmatched transactions
- Missing invoices or bank statements
- Consistency across reports
If your business requires an external audit, this internal review will dramatically streamline the process.
Final Thoughts from Thomas Nock Martin
Well-prepared year-end accounts do more than meet regulatory requirements. They provide deep insights into your performance, build credibility with stakeholders, and empower you to make smarter decisions in the year ahead.
We offer full-service support for UK SMEs to ensure accuracy, compliance, and clarity — from bookkeeping to filing, and everything in between.
Need support preparing your year-end accounts?
📧 Email us at mail@tnmca.com
or call 📞 01384 261300.
FAQs – Year-End Accounts
What’s the purpose of year-end accounts?
To report a business’s financial performance and position for the year, and to comply with HMRC and Companies House.
Do I need all three financial statements?
Yes — income statement, balance sheet, and cash flow statement form the core of accurate financial reporting.
Can I do my year-end accounts without an accountant?
Technically yes, but professional oversight ensures compliance and improves financial planning.
What’s the deadline for submitting year-end accounts?
Typically 9 months after your financial year-end for Companies House, and 12 months for corporation tax return.
Do sole traders need year-end accounts?
Yes, but in a simplified form. You’ll still need to complete a Self Assessment and maintain clear records.
