To ensure a fast year end, you should ensure that the following are prepared:
In this example we are using 31st December as the year end .
1. Ensure you have all the Bank Statements for every bank account your business has
a. Current Accounts
b. Deposit Accounts
c. Term Loan Accounts
d. Any other loans including mortgages/insurance finance/audit fee finance etc.
(In the case of insurance finance etc. there wont be a statement, but there will be a signed loan agreement and you need to have this document)
If you are missing any bank statements, request copies now.
If you can get them online, then go to your online banking and print them out.
2. Statements dated 31st December received from all Suppliers
This is to help in reconciling the Aged Creditors Report in your accounts software
(not all suppliers send statements, try and confirm amounts owed in this case.
3. Agree Aged Creditors Report in your accounts software at 31st December
Be able to explain any differences on a suppliers account
e.g. Overpayment
Credit Note received or due
Discount Due
Missing Invoice
Error on Invoice
Disputed Invoice
There should also be written correspondence with the supplier about these differences
(Written Correspondence includes E-Mail, Fax and Letter. Verbal communication does not count!)
4. Confirm the the amounts owed by customers at 31st December is agreed by the Directors
If any Credit Notes are required they should be issued in December to;
a. Reduce the VAT Liability
b. To reduce the Corporation Tax bill
c. To keep the customer happy
d. To ensure that your customer has no excuse not to pay you
If any Invoices need to be reissued due to;
e.g. wrong rates, vat miscalculations, these should be done in December to
a. Reduce the VAT Liability
b. To reduce the Corporation Tax bill
c. To keep the customer happy
d. To ensure that your customer has no excuse not to pay you
5. All claims for expenses/subsistence/mileage due to Employee's and Directors have been claimed for by each of those employee/directors.
(They don't have to be paid to the employee/director but they need to be claimed to be included in the year end accounts)
6. The balance in the VAT control account should equal the amount due on the November/December Vat Return
If it does not, the difference needs to be found
7. The balance in the Paye/Prsi Control account should equal the Monthly Paye/Prsi Return (P30)
If it does not, the difference needs to be found
8. The balance in the Wages/Net Pay control account should be zero
The exception to this is if you have paid the first wages week of January (next year) before the Year End because you paid wages early for the Christmas Holiday Period. If the balance is not zero, you need to be able to explain the difference.
9. A Bank reconciliation needs to be performed for each Current Account Bank Account
10. The balances on every loan account in your accounts software needs to be agreed to the bank statements
If they don't agree, then you may be missing interest charges and these need to be entered.
11. If there are any lease or hire purchase agreements, ensure that you have a copy of each agreement and that you know what items were leased and the cost of the items that were leased.
12. If any Fixed Assets were bought during the year, a copy of the suppliers invoice is required and should be copied and kept in a separate file for asset purchases.
13. If any Fixed Assets were sold during the year, this needs to be documented
14. Any additional monies taken by directors that were not wages, need to be documented
There are other items such as stock, depreciation, moving items form one expense code to another, if required, accruals and prepayments that need to be done can be done once the above items are completed.
