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The Basics of Year End Accounts

For the small business owner and sole trader, Year End accounts can be a tremendously daunting task. Legally required by HMRC, every UK business owner is required to prepare Year End accounts but where do we begin? What can Year End accounts achieve and why are they required?

Whatever a company’s twelve month operating period, the end of the month in which the company was established is classed as the Year End. Year end is not only as mentioned, a legal requirement by HMRC but is also a vital tool in helping protect your business from pitfalls, reduce tax payments and plan for future success.

Where to Begin?

For any business of any size Year End is a tremendously intense process and requires a great deal of knowledge and expertise which is why the support of an experienced accountant is essential. With specialist support your Year End can be completed accurately and on time.

Year End can be very intimidating for the small business owner but once you have sought the right professional accountancy service, you can support the process by...

  • Ensuring your bookkeeping is up to date and accurate and reflective of your bank statements.
  • Ensure that all assets have been correctly declared.
  • Ensure anything of no value is written off.
  • Ensure all debts have been recorded.

What will Year End Accounts do for you?

  • Year End accounts will allow you to review your company’s performance and finances, a great assistance when planning for future growth.
  • Year End accounts ensure business and personal taxes are always prepared and filed on time with HMRC, leaving you avoiding any fines or penalties.
  • The process will allow your accountant to calculate your tax and ensure your business is financially prepared.
  • A full financial forecast will allow your accountant to plan a tax strategy that could see your business paying out a lot less.

Although completing year end accounts may seem like a daunting task, it really can be one of the best financial tools for any business. With information on your business’ profit and loss for the year and a clear indication as to your overall worth, your accountant can then establish a solid tax reduction strategy and work out how best to improve your business’ current performance. Your accountant will also be able to create a financial report that may provide the solid support needed to gain investment.

If you are a small business owner or sole trader, prepare yourself for Year End by ensuring you know just what is required and just how the right accountant can make the task seem a lot less daunting.

Need further advice? Why not contact one of the experienced finance specialists from Calculated Accountants today?

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