End of Financial Year Checklist for Small Businesses

When Is Your Financial Year End?

Different countries have different standard financial years:

• Australia: 1 July - 30 June
• United Kingdom: Companies choose their own year-end (often aligned with 31 March or 31 December)
• New Zealand: 1 April - 31 March (standard, but businesses can apply for a different balance date)
• United States: 1 January - 31 December (calendar year) or a fiscal year ending on the last day of any month
• Canada: Can be any 12-month period chosen at incorporation

Regardless of your year-end date, the preparation process is the same.

8 Weeks Before Year-End

Review Outstanding Invoices

Chase any outstanding payments before year-end. Unpaid invoices on accrual accounting still count as income, but collecting them improves your cash position and clarifies your financial picture.

Identify Bad Debts

If any invoices are genuinely uncollectable, write them off before year-end. This gives you a tax deduction for the loss. Document your attempts to collect before writing off.

Review Prepaid Expenses

Check for expenses you have paid in advance that span the year-end. Prepaid insurance, annual software subscriptions, and advance rent may need to be apportioned between financial years.

4 Weeks Before Year-End

Reconcile All Bank Accounts

Every bank account, credit card, and PayPal account should be reconciled up to date. Unreconciled transactions are the number one source of year-end stress.

Review Asset Register

Check your fixed asset register. Have you recorded all new assets purchased during the year? Are there assets you have disposed of that need to be removed? Are depreciation rates correct?

Check Inventory

If you hold stock, conduct a stocktake as close to year-end as possible. The value of closing stock affects your cost of goods sold and therefore your profit.

Review Loan Balances

Ensure your balance sheet accurately reflects all business loans, credit facilities, and hire purchase agreements. Check that interest expenses have been recorded correctly.

2 Weeks Before Year-End

Finalise Categorisation

Review your Profit and Loss statement for any transactions sitting in suspense accounts, miscellaneous categories, or "ask my accountant" accounts. Every transaction should be properly categorised.

Bring Forward Expenses

If you need to make business purchases, consider making them before year-end to claim the deduction in the current year. This is particularly relevant for the Australian instant asset write-off.

Make Superannuation/Pension Contributions

In Australia, superannuation payments must be received by the fund before 30 June to be deductible in that financial year. Allow at least two weeks for processing. Similar deadlines apply for pension contributions in other countries.

Review Payroll

Ensure all employee wages, PAYG withholding, leave balances, and superannuation have been recorded correctly for the year.

Year-End Close

Run Trial Balance

Generate a trial balance and check that debits equal credits. Review every account for unusual balances. A liability account with a debit balance or a revenue account with a debit balance suggests an error.

Reconcile Intercompany Accounts

If you have transactions between related entities, ensure they are properly recorded and balanced on both sides.

Accrue Outstanding Expenses

Record any expenses that relate to the current year but have not yet been invoiced to you. Common accruals include:

• Accountant fees for year-end work
• Utility bills not yet received
• Employee leave provisions
• Interest on loans

Generate Financial Statements

Run your Profit and Loss, Balance Sheet, and Cash Flow Statement. Review them for reasonableness. Compare to prior year and investigate any significant variances.

After Year-End

Lodge Tax Returns

Work with your accountant to prepare and lodge your tax return. Provide them with your clean, reconciled financial data, supporting documentation, and any specific questions.

Plan for Next Year

Use your year-end results to set budgets and targets for the coming year. Which expenses can be reduced? Which revenue streams should be grown? What investments should be made?

Set Up Automated Processes

If year-end was stressful, identify the bottlenecks and automate them. Automated transaction categorisation, continuous bank reconciliation, and real-time financial dashboards eliminate the end-of-year scramble entirely.

Year-End Checklist Summary

• [ ] Chase outstanding invoices
• [ ] Write off bad debts
• [ ] Reconcile all bank accounts and credit cards
• [ ] Review and update fixed asset register
• [ ] Conduct inventory stocktake (if applicable)
• [ ] Verify loan balances
• [ ] Categorise all transactions correctly
• [ ] Make strategic purchases before cut-off
• [ ] Pay superannuation/pension before deadline
• [ ] Review payroll records
• [ ] Run trial balance and investigate anomalies
• [ ] Record accruals and prepayments
• [ ] Generate financial statements
• [ ] Compare to prior year
• [ ] Provide clean data to your accountant
• [ ] Lodge tax return on time

The businesses that find year-end easy are the ones that keep their books clean throughout the year. Automated bookkeeping tools eliminate the catch-up work and make year-end a review process rather than a reconstruction project.