Prepare Year-End Accounts for Your Small Business

Team Nomi

Jun 21, 2025
4 minutes read

Year-end accounts are an important part of running a small business in the UK, providing a clear summary of your business’s financial performance and meeting legal requirements. These statutory accounts typically include a profit and loss account, which shows your company’s sales, expenses, and profit or loss for the year, and a balance sheet, which details assets, liabilities, and equity at year-end. 

Accurate preparation of year-end accounts helps you avoid penalties, makes tax filing easy, and offers valuable insight into your business’s financial health. With good preparation, the process becomes less stressful and more manageable. In this blog, we’ll guide you through practical steps to get your year-end accounts ready on time and keep your business on track.

Steps to Prepare for Year-End Accounts

Preparing for year-end accounts is essential for small business owners to ensure compliance, avoid penalties, and gain a clear understanding of their financial position. Here are the important steps:

1. Organise and Review Your Financial Records

• • Maintain accurate records of all income, expenses, assets, and liabilities throughout the year. This includes sales invoices, purchase receipts, bank and credit card statements, and records of loans or mortgages.
  • Use accounting software to efficiently record and categorise transactions correctly.
  • Regularly reconcile your records with bank statements to catch errors early and ensure completeness.

2. Collect Unpaid Invoices and Pay Bills

• • Review your accounts receivable and follow up on any unpaid invoices to ensure all income is accounted for before year-end.

• • Pay any outstanding bills and debts so your accounts show an accurate picture of your finances and you don’t carry over unnecessary payments into the new year.

3. Conduct a Year-End Financial Review

• • Reconcile all bank and cash accounts to ensure every transaction is recorded.
  • Check for missing or duplicate transactions, and review outstanding invoices and debts.
  • Assess asset purchases or disposals, as these impact your balance sheet and tax calculations.
  • Identify any unusual or one-off transactions that may need special attention in your accounts.

4. Prepare Core Financial Statements

• • Compile your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement.

• • Ensure all documents comply with UK accounting standards and are accurate. The balance sheet must be signed by a director and include their printed name.

• • Prepare notes to the accounts and a directors’ report if required.

5. File Your Accounts and Company Tax Return

• • Submit your accounts to Companies House and HMRC by the relevant deadlines.

• • Use the appropriate online portals for filing. Ensure you have your Government Gateway credentials and company authentication code ready.

• • Be aware of potential penalties for late or incorrect filings, which can be substantial.

6. Check Employee Data and Payroll

• • Make sure employee records are up to date, including new starters and leavers.
  • Ensure payroll details, payments, and deductions are accurate.
  • Report the average number of employees in your accounts.
  • Submit year-end payroll reports to HMRC and keep records for at least three years.

How to Choose the Right Accounting Software for Your Business

Choosing the right accounting software is an important decision for any small business owner, as it can save you time, reduce errors, and help you stay on top of your finances. When selecting software, consider your business size, the features you need, ease of use, and your budget. Look for solutions that offer core functions like invoicing, expense tracking, VAT support, payroll, and integration with your bank accounts.

Nomi is a strong choice for UK businesses, offering an all-in-one cloud-based platform designed for both business owners and accountants. With Nomi, you get features such as bookkeeping, VAT management, final accounts, corporation tax, payroll, and even client onboarding, all under one roof. The software automates many tasks, including:

• • Automates routine accounting tasks to save time and reduce errors.
  • Streamlines workflow with integrated bookkeeping, VAT, payroll, and tax features.
  • Secure cloud access to your financial data from anywhere.
  • Includes a free PDF to CSV converter for easy bank statement imports.
  • Allows direct filing with HMRC and Companies House for simple compliance.

Choose software that fits your business needs; a user-friendly platform makes managing accounts easier and more efficient.

If you’re a small business owner or an accountant helping clients get ready for year-end accounts, using Nomi software can make the process much simpler and more efficient. 

To see how Nomi can benefit your business, you can easily book a demo for a guided walkthrough of its features and interface. Nomi also offers a 30-day free trial, allowing you to explore the platform and experience its automation, reporting, and compliance tools firsthand before making any commitment.

Note: This article is for informational purposes only and does not constitute financial or legal advice.