The financial year-end has come and gone—now what? Many business owners breathe a sigh of relief once the fiscal year wraps up, but finalising your financials is where the real magic happens. Properly closing off your accounts ensures compliance, gives you valuable insights, and sets your business up for success in the new financial year. Here’s a 7 step-by-step guide to getting it done right.
- Reconcile everything
Before you can finalise your accounts, make sure all bank transactions, supplier payments, and customer invoices are reconciled. Your accounting system should match your bank statements down to the last cent. Any discrepancies? Now’s the time to investigate.
- Review outstanding debtors & creditors
Check for any unpaid invoices (both from customers and to suppliers). Send final reminders to outstanding debtors and settle any amounts you owe. Cleaning up these accounts ensures a more accurate financial position.
- Check asset & liability accounts
Review your balance sheet:
- Have you accounted for all assets, including any new equipment purchased?
- Are all liabilities (loans, tax provisions, and payables) correctly recorded?
- Process depreciation & adjustments
Adjustments like depreciation, accruals, and provisions must be recorded before finalising your statements. Work with your accountant (or us 😊) to ensure compliance with tax and accounting standards.
- Prepare & review financial statements
Your income statement, balance sheet, and cash flow statement should be prepared and reviewed. Look at trends, profitability, and key financial ratios. These numbers tell the real story of your business and highlight areas for improvement.
- Submit tax returns & compliance reports
Ensure all tax submissions (VAT, income tax, provisional tax) are accurate and submitted on time. Late filings can result in penalties, so double-check deadlines and work with a tax professional if needed.
- Set financial goals for the new year
Use your year-end figures to plan ahead. Set revenue targets, review expenses, and identify areas for cost savings or investment. Your financials should guide strategic decision-making for the year ahead.
Need expert help? Fin-Source Consulting has you covered
Finalising your financials can be overwhelming, but you do not have to do it alone. We specialise in helping SMEs streamline their finances, stay compliant, and plan for sustainable growth. Get in touch with us today and let’s make your numbers work for you!
Visit Fin-Source Consulting to find out more about our financial services, or book a free discovery call