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Year-End Accounting Checklist: How to Close Your Books and Start the New Financial Year Strong

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Getting your books in order before the year-end doesn’t have to be stressful. A clean close sets you up for a smoother, smarter new financial year — and makes tax season far less painful. Here’s a practical, step-by-step checklist to get everything in order.

1. Reconcile All Accounts

Start with a full reconciliation across every account: bank accounts, payment processors, credit cards, and petty cash. Match invoices to receipts and purchase orders so nothing slips through the gaps.

2. Chase Up Open Items

Review any outstanding balances. Send reminders for unpaid invoices and offer payment plans where appropriate. Clear any supplier credits and returns, and write off any unrecoverable debts — ideally with guidance from your accountant.

3. Review Stock and Fixed Assets

Carry out a physical stock count and adjust your records for any dead or obsolete inventory. Review your fixed assets too — check depreciation calculations and record any disposals made during the year. Your “paper” value needs to match your “shelf” value.

4. Sort Accruals and Prepayments

Make sure costs are allocated to the right period. This includes recurring expenses like hosting fees and insurance. Leave clear notes for your accountant or bookkeeper to avoid any confusion at year-end review.

5. Prepare for Tax and VAT

Confirm your upcoming deadlines and ring-fence the funds you’ll need. Check for any allowable expenses or tax reliefs you may have missed — these can make a meaningful difference to your final bill.

6. Set Up Better Processes for the Year Ahead

Use year-end as a chance to improve how your business runs day-to-day. Standardise your invoice payment terms, automate reminders, and tidy up your chart of accounts. Consider building a month-end checklist and an owner’s dashboard so you always have a clear view of your finances.

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