As the end of your company’s financial year approaches, it is time to start preparing your year-end accounts. These reports are more than just a legal requirement — they offer a clear picture of how your business is performing and what steps you can take next.
If your business is based in Bedford, working with local bedford accountants can make the process easier, faster, and more useful. Here is what you need to know to prepare effectively and make the most of your year-end review.
Understand What Year-End Accounts Include
If your business is a limited company, you are required to submit year-end accounts to Companies House and HMRC. These accounts typically include:
- A balance sheet showing your business’s assets and liabilities
- A profit and loss statement outlining income and expenses
- Notes explaining key financial information
- A director’s report (for larger companies)
Sole traders and partnerships do not have to file accounts with Companies House, but still need to prepare accounts for self-assessment and tax planning.
Your accountant will prepare these for you, ensuring they meet the latest UK accounting standards and filing requirements.
Meet Deadlines to Avoid Penalties
Missing deadlines for filing year-end accounts can lead to financial penalties and legal issues. Here are the main deadlines to remember:
- Companies House filing: Within 9 months of your financial year-end
- Corporation tax payment: Within 9 months and 1 day after your year-end
- Corporation tax return filing: Within 12 months of your year-end
For example, if your year-end is 31 March 2025, your accounts must be filed by 31 December 2025, and your tax paid by 1 January 2026.
Your Bedford accountant will help you manage these deadlines so that you stay compliant without the last-minute rush.
Use Your Year-End Accounts to Make Better Business Decisions
Year-end accounts are not just for HMRC. They can help you:
- Understand your cash flow and profitability
- Compare performance against previous years
- Make better decisions about growth, staffing, or investment
- Prepare for funding applications or bank loans
Your accountant can walk you through your accounts in plain English, highlighting what the numbers mean and how to improve your performance going forward.
Get Your Books in Order Throughout the Year
Preparing for year-end is much easier if your bookkeeping is accurate and up to date. This includes:
- Recording all invoices and expenses
- Reconciling your bank accounts
- Reviewing your VAT returns (if registered)
- Ensuring payroll and dividends are correctly recorded
Using cloud accounting software like Xero or QuickBooks helps automate much of this process. Your accountant can also review your books regularly and flag any issues early.
Plan for Tax Before the Year Closes
Before your financial year ends, you can take action to reduce your tax bill. A good accountant will review your finances and recommend strategies such as:
- Making pension contributions
- Investing in capital equipment
- Using your personal and business allowances effectively
- Adjusting director salaries and dividends
These decisions are most effective when made before the year ends, so speak to your accountant in advance for the best results.
Local Support for Bedford Business Owners
At BAA Group, we help Bedford businesses with everything from bookkeeping and payroll to year-end accounts and strategic planning. We work closely with our clients to ensure compliance while helping them grow with confidence.
If your year-end is approaching and you want a stress-free experience with a local, friendly accountant, we are here to help.
Book a free consultation today and let’s get your accounts sorted.
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