Brighton end of year accounts
End of tax year accounts
Did you know that you no longer need to use an accountant to do your end of year accounts? New laws from 2016 have permitted bookkeepers with the relevant training to carry out the same end of year accounts to the same level and with the same detail as an accountant. But of course a bookkeeper will charge significantly less saving your business hundreds of pounds a year! Brighton end of year accounts have never been easier or more cost effective. If your business is based in Brighton and you need your end of year accounts arranged then please give us a call or use the contact form on this page.
What are the end of year accounts?
This is the time when all the year end checks must be carried out, the accountant’s questionnaire completed, all paperwork sorted and the bookkeeping software checked to ensure everything is in order.
The “end of year accounts” are done to enable the accountant to easily prepare the annual accounts and calculate how much tax has to be paid to the government.
You might be confident enough to sort out your own accounts and calculate and file your own tax returns… but the chances are that you will get stuck or not do it correctly!
Whether you are passing it to an accountant / bookkeeper or doing it yourself, there are several things you can do throughout the year to be well prepared for the end of tax year:
Contact us to do your Brighton end of year accounts
Ensure your bank reconciliations are up-to-date and complete, preferably at the end of every month.
The closing balance of each month’s bank balance should reconcile to the closing balance of the cash book/bank ledger on the same date. i.e. if the bank account balance on 3rd April is £3,000.00 the cash book balance should reconcile to £3,000.00.
Same goes for the petty cash. It should be recorded within the bookkeeping system and reconciled monthly. The amount recorded in the books on the last day of the financial year, should be the precise amount of cash in the box.
This should be of particular interest if you are based in Brighton and need someone to do your end of year accounts. Brighton end of year accounts.
Coding the Income and Expenses
Be sure that each income and expense type has been coded correctly to the correct ledger account through the year.
Pull up a general ledger listing in your bookkeeping software and scroll down through it looking for anything that does not look right. If you can cannot adjust it to the correct account then let your accountant know.
If you are using a simple cash book opposed to bookkeeping software, cast your eyes through the book and make sure you are happy with your income and expense categories because once the end of tax year is finalised you cannot change them.
Create the Perfect Filing System
File all documents in a well organised system so it’s easy to find any document that you require for the end of tax year. One method is to file sales invoices in numerical order.
File purchase invoices in date order (monthly tabs).
File bank statements and reconciliations in date order.
Business vs Personal Expenses
Keep business and personal expenses separate by using two different bank accounts. Learn what expenses are deemed personal and what expenses can actually be claimed in the business accounts for tax purposes.
Personal expenses paid for with the business accounts should be put to the ‘Drawings” account.
If you are sorting out your year end paperwork now, and there are business expenses you paid for with you personal account then you can give the details to your accountant who will bring them into the business accounts.
Debtors & Creditors
Your accountant will need to know the exact amount your business owes to others and how much is owed to your business by your customers at the end of the financial year.
Compile a list of all outstanding creditors and debtors as of this balance date.
A stock/inventory audit should be carried out within the last month of the end of tax year and any necessary adjustments made to correct the inventory account to match the items on hand.
Keep a record of all receipts relating to the purchase of assets.
This is necessary because your accountant will want copies of these when preparing your annual accounts at the end of tax year.
If any of your assets that were in the books in the last financial year were sold or thrown away during the current year your accountant will need to know so it can be removed from the assets/depreciation schedule.
Payroll Tax & Sales Tax
Process your monthly or regular taxes with diligence.
Once completed, be sure not to change anything in the bookkeeping system for these tax periods as this could affect your filed tax calculations and cause the end of tax year balances to be wrong.
Brighton end of year accounts
Contact Sophie on 07946 379 461 if you need your end of year accounts completed.