Year End Accounting

‘Year-end’ or Year end accounting is basically a period when the annual accounting closes or business books closes at the end of the year, prior to which specific accounting procedures are followed by these businesses.

Accounting or finance management is a very complex subject and this is the reason that comprehensive knowledge on accounting and finances rules, regulations and standards is very necessary to manage all the accounting and taxing procedures of businesses.

We at Target Accounting offer you a complete range of Year-end accounting services at the most reasonable costs. Trading company, self-employed or partnership firm, Target Accounting meets every standard and regulation in effects as per the requirements of its clients. On its clients’ request, the company offers to visit their offices to understand their specific requirements

In the UK, an accounting year does not essentially match with the calendar year. The government sets the fiscal year, which starts from April 6th and ends on April 5th the following year for personal tax purposes. Though the deadline for submitting self assessment tax returns might vary for certain individuals, the tax year is the same for everyone in the UK.

Whether a profit or a non-profit organisation, accounting procedures are performed in all the organisations by the accountants or finance experts.

When should you perform a year-end accounting?

Going by the name, the year end accounting procedures are performed after the end of the tax year but before the preparation of financial statements begins. Even month end procedures are performed that helps in creating the year-end accounting.

The procedures for year-end accounting

Year-end accounting should be adapted to meet the organisational needs.

Clarifications about the procedures and rules for year-end accounting:

  • Although year-end accounting procedures suggests they are performed at the end of every financial year, same process and idea is or can be followed during the month end accounting.
  • Every organisation works out in a way that best meets their purpose. There are no fixed set of rules for year-end accounting.
  • The most common way is to keep record of all the financial transactions in a way that you don’t have to be worried about the year-end accounting as you can directly put them in your accounting records. This can includes every single transaction that takes places like – bills and invoices for goods sold on credit, bills/invoices for credit purchases, payments made to associates and partners in the business, and so on. To maintain an organised calculation all records are important, else you may have problem while working out on the bank transactions made, as it will show many transactions which you may not have recorded in your records. It is completely the responsibility of the accountant of every organisation to follow this procedure and maintain an organised record of all databases that can even help further in several decision making in the future.

And if you have any confusion or facing problem in maintaining your financial transaction records, then contact Target Accounting, an expert in the field who can assist you in the procedure of creating year-end accounting.

The objectives and how does it help in the long run

  • The entire process helps in ensuring the Financial Statements prepared after the year end accounting process contain true information.
  • It also helps in detecting errors and prevent from frauds taking place.
    The process also ensures that the all the items of income and expenses are put to records on the basis of accumulation.
  • The procedure also ensures the accuracy of the ledger books balances that are transferred from one tax year to another.

A year end accounting is a daunting task for the first-time limited companies. The comprehensive checklist below can assist you in the process though. If it still scares you or you do not have enough time to manage the process, then best is to contact Target Accounting who can help you manage your ledger books and financial statements year or year.

A ‘year end’ is accountancy is not only the day your financial period ends but it is also the time when limited companies have to send some important documents to HMRC and Companies House.

For all who started financial record reporting on or after 1st January 2016, the Financial Reporting Standard 105 (FRS 105) applies, where you have to file documents as detailed here. There are different reporting requirements if your financial period reporting started before this date.

An overview of what is required to be filed with HMRC:

Company Tax Return

Company Tax Return (CT600) has all the information of any limited company’s income, minus any tax allowances and expenditures. The profit that is the remaining amount – will then be used to calculate how much Corporation Tax your company owes.

Annual/Yearly Accounts

The annual account that contains three documents and is created every year has to be submitted to HMRC:
Income statement of the company– It is the document that shows the profit made during a particular period.
Company’s financial position – It shows the business or company value that is based on capitals, reserves, assets and liabilities.

Overall References made by the company (Footnote) – Footnote contains credits, advances, and guarantees offered to company directors. Also includes contingencies, guarantees and financial commitments made during the period.

Documents to be submitted with Companies House

You have to submit only two documents from your yearly annual account as per FRS 105: the Company’s Financial Position statement and the Footnotes. Companies House website makes both the documents public.

So, if you are about to reach your year-end or the financial year, Target Accounting can help you produce financial statements, balance sheet, year end accounting reports, and assist you professionally in making your accounting work out accurate, quick and easy. Target Accounting offers most adequate advice regarding the procedures in year end accounting.