Year-end accounts preparation

The end of the tax year can be one of the most stressful periods for any business, but it doesn’t have to be.

At Framework, we specialise in year-end accounts preparation and ensure everything is prepared and filed accurately and on time. We also make sure financial teams understand everything that’s going on, providing clarity and compliance instead of jargon and nasty surprises.

What is year-end accounts preparation?

Year-end accounts, or annual accounts, are a financial snapshot of a business for a given tax year. They’re financial statements that summarise all of the financial activities over this set period, which is usually 12 months.

The process is often complex and daunting for all sizes of business, but it is a legal requirement (except for sole traders and traditional partnerships, who must report their profits to HMRC through Self Assessment). As such, accurate accounts form the building blocks of compliance, business decisions, and future planning capabilities.

Why is year-end accounts preparation important?

Year-end accounts aren’t simply a box-ticking exercise. They’re actually pivotal to the overall finance function of any business, and can help in the following ways:

Compliance

Accurate year-end accounts help businesses avoid HMRC and Companies House fines for late and inaccurate filing.

Tax-Efficiency

They also ensure that all tax allowances and reliefs are claimed to legally minimise tax for organisations.

Insights

Year-end accounts help leaders understand business performance and stability, which can impact many other areas.

Forecasting

Year-end accounts link directly to forecasting, cash flow, and management reporting, and can connect to the bigger picture.

Reliable year-end figures can also be used to help businesses prove financial credibility for investment or lending opportunities and demonstrate accountability to boards, funders, and members. They can also help businesses identify risks and opportunities regarding hiring, expansion, or new projects.

In essence, not only do well-prepared accounts keep businesses compliant today, but they also help teams and organisations prepare for the future.

Four mistakes businesses make with year-end accounts

Year-end accounts can catch businesses out in various ways. Based on our experience, these are four of the most common:

1.     Missing deadlines

There are multiple deadlines to keep track of in the world of business. If yours misses any, your business can end up with penalties and fines.

2.      Messy bookkeeping

Disorganised bookkeeping leads to inaccurate or incomplete records. This makes the end of the tax year much more stressful than it needs to be and, in many cases, more expensive.

3.     Ignoring allowances

Allowances help businesses save money, but many aren’t even aware of what exists and how much they can save. From capital allowances to research and development relief, and more, it can go much beyond the basics.

4.     Treating accounts as an afterthought

Many businesses see accounts as a legal requirement only. This leads to several issues and can mean businesses lose out on a valuable decision-making tool.

How we can help

At Framework, we have vast expertise in handling year-end accounts for businesses of all shapes and sizes. Handling the process and helping businesses be as efficient and compliant as possible, we carry out the following for our clients:

  • Preparing for the year end throughout the year, making adjustments as part of monthly reporting, so that year-end files can be prepared on time

  • Planning ahead by arranging meetings with relevant team members before the year end to discuss and agree on the necessary steps, ensuring the business is fully prepared

  • Preparing statutory accounts in line with UK accounting standards

  • Filing accounts with HMRC and Companies House on your business’s behalf in advance of deadlines

  • Calculating and submitting Corporation Tax returns ahead of deadlines

  • Keeping financial and leadership teams posted on key deadlines and allowances

  • Reviewing and adjusting business’s bookkeeping records

  • Highlighting key trends and insights for businesses to help with planning

  • Providing ongoing support when it comes to cash flow, forecasting, and management accounts

  • Taking the pressure of year-end away to save time, reducing hassle, and crucially, reducing risk

  • Discussing, post-filing, the past year’s performance and how to improve moving forward, making sure the business is set for the upcoming year.

Find out more

Year-end doesn’t have to be stressful, and it should be seen as an opportunity instead of an inconvenience. With everything handled accurately and on time, we make year-end simple and stress-free.

Get in touch to discover how we can help when it comes to year-end accounts preparation.

Get in touch