Is it company year end already? It feels like we have just completed 2018 and now we are in the middle of 2019 with a new year end to process. For those of you who are not involved in Finance I thought it may be an ideal Blog to list a few things that keep me very busy during the first half of the year.
So, what exactly is company year end?
This is the companies accounting period. It’s the date which is used for Limited Companies to collate and reconcile all documents required for submission to HMRC. The clock will start ticking from this date for the following documents/information to be submitted:
- Company tax return - Other wise known as CT600, this will show details of the company income less any taxable allowance and expenses. These figures are used to calculate the company Corporation Tax.
- Confirmation statement - Submit our company information to Companies House
- P11D’s and P60’S - Reconcile end of year payroll figures
- Annual accounts - are made up or 3 statements
- Income statement - shows company Profit or Loss
- Statement of financial position - business assets, liabilities, capital and reserves
- Company notes - transactions between company/directors/loans etc
So how have I been preparing for this?
- Expenses - Collate all staff/business expenses – every penny taken off as an expense will reduce profit and loss which means less corporation tax to pay.
- Credit control - Chase all overdue client invoices for payment. Issue all invoices by the company Year End date.
- Paperwork - Check all the monthly financial transactions are correctly recorded in your software and you have the relevant invoices to match transactions. You are required to keep all financial information for 6 years.
- Reports - Gather all accounting software reports required by the Accountant. We use Sage 50 accounts software. I typically run reports for aged creditor/debtor, trial balance, profit and loss and balance sheets.
- We submit our VAT returns quarterly to HMRC, check this is all in order and conforms to the Making Tax digital regulations.
- Petty cash reconciliation.
- Complete Stock take and reconcile accounts
- Review depreciation of assets
- Process credit card transactions - reconcile statements against all receipts and check all VAT recorded correctly.
- All prepayments and accruals posted correctly.
- Review draft unaudited accounts from Accountant and provide any information requested.
- Company cars reviewed.
- Board meeting minutes and Customer Statements issued and records in good order.
So, their we have it, just a snapshot of part of my role within Optima.
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