Getting Your Books Ready for the New Tax Year

Getting your books in order before the new tax year isn't just about ticking a box. It helps make sure you’re starting the year with your house in order, rather than playing catch-up under pressure. Whether your business is ticking along quietly or going through a growth phase, sorted finances give you a clearer picture and make decision-making less stressful.

For businesses in Kent and nationwide, this often means digging into a year’s worth of receipts and reports before April rolls around. When handled properly, this process tightens up your records and leaves fewer surprises when filing time comes. Good bookkeeping sets the tone for the months ahead, and getting it right now can save you headaches later, especially when changes to tax laws or deadlines crop up without much warning.

Review and Organise Financial Records

Before you can tidy anything up, you need to know what you’re working with. That means pulling together all receipts, invoices, bank statements, and expense reports from the past year. Whether these are tucked away in software somewhere or still crumpled in a drawer, it’s important to get everything in one place and in proper order.

A messy paper trail causes issues when it's time to submit returns or prove expenses. Missing records can also create gaps that might raise questions with HMRC. To avoid that, go through each document with care, checking that figures make sense and everything has been logged in the right category. For example, you don’t want to realise half your travel costs were filed under office supplies months after they’ve already been listed in an annual report.

Organising your info is easier when you break it into chunks. Some helpful steps include:

• Collecting all receipts and digital records for income and spending

• Sorting documents into categories like travel, supplies, staff costs, and client work

• Checking for duplicates or missing entries

• Making sure all invoices are paid or flagged for follow-up

• Reviewing large or unusual items for accuracy

Once everything is in order, you’ll find it easier to spot trends, review margins, and plan better for the year ahead. It’s also the best time to flag anything you’re not sure about, so you can get support from a professional before it becomes a bigger issue.

Reconcile Bank Statements

This is a step most people tend to put off, but it’s a key one. Reconciling bank statements means comparing what’s recorded in your books with what the bank actually has on file. It’s not the most thrilling task, but it helps spot errors, missed payments, and any inconsistencies that could throw your accounts off.

Unmatched entries can come from simple oversights like forgetting to log a direct debit or entering the wrong number. They can also be clues that something’s not right, like a payment that never went through or a fraudulent charge that slipped under the radar. Sorting this now, rather than after the tax year ends, reduces the chance of needing corrections, which can often be more trouble than they’re worth.

Staying on top of this is easier with a monthly routine, but if that has slipped, year-end is the time to catch up. Go through each month one at a time, matching every payment and deposit to your records. Keep an eye out for outstanding items that haven’t cleared, and double-check that petty cash or smaller transactions aren’t missing.

Taking the time to reconcile properly makes sure your accounts reflect reality. That way, you’ll enter the next tax year without any loose ends hanging over you. Once this part is clear, the rest of your reporting falls into place more smoothly.

Update and Verify All Accounts

Once your transactions and statements are lined up, the next step is to update and double-check your account balances. This doesn’t just mean your main bank account. It includes petty cash, business credit cards, loan statements, and any digital platforms you use to manage spending or collect payments.

Start by reviewing your income and expenses. Make sure each entry for the year is recorded, dated correctly, and falls into the right category. This includes fixed expenses like rent and software subscriptions, as well as more unpredictable costs such as travel or client entertainment. When the categories are wrong or numbers don’t add up, it can throw off your reporting and lead to inaccurate tax submissions.

For instance, if you’re running a business that pays freelancers occasionally, those costs need to be separated from regular payroll or staff wages. Overlooking that detail can raise questions if HMRC decides to take a closer look. Now is also the time to clear up any duplicate entries or missed payments, so nothing skews your reporting when the quarter ends or submission dates approach.

It’s good practice to compare your accounting records with bank balances and statements. Any gaps or odd-looking totals shouldn’t be ignored. That’s often a sign that something has been logged more than once or missed altogether. Catching those issues early keeps everything cleaner and avoids adjustments that might be flagged or delay your year-end processing.

Why Kent Businesses Rely on Professional Bookkeeping

Hiring a professional to manage your books means dealing with fewer surprises when deadlines come around. Bookkeepers bring a focused approach to tracking income, recording expenses, and checking every account for accuracy. What often takes hours for a small business owner to sort through can be handled quickly by someone who understands the process fully.

Working with a local team also means you’re getting help from someone who knows how businesses in the area work, and what’s expected from HMRC. They are used to handling year-end reviews, quarterly filings, and sudden changes to tax rules. That can be especially helpful when updates like the Making Tax Digital changes roll out or when local grant requirements come with tight documentation checks.

Here is how good bookkeeping support can make a difference:

- Keeps your records updated for quicker reporting

- Spots missed deductions or unclaimed expenses

- Helps prevent late submissions or issues with HMRC

- Saves you time by handling repetitive admin tasks

- Frees you up to focus on planning rather than catching up

When handled by professionals, your year-end doesn’t have to be a rushed and stressful period. It becomes part of a regular process that supports your growth and makes planning for the next year easier.

Don’t Carry the Burden Alone

Trying to juggle both the day-to-day running of your business and the paperwork that comes with it gets tiring fast. As the tax year draws to a close, the pressure to get everything perfect can grow. Mistakes made during this time generally don’t come to light until later, and by then they’re harder and more costly to fix.

Bringing in support before the pressure builds is one of the easiest ways to avoid those problems. Bookkeeping services catch the small issues early and help you steer clear of fines, avoid back-and-forth emails and prevent rushed corrections. They know what needs to be filed, when it has to happen and how to handle it with minimal fuss.

When you have support from someone who gets it right early on, you can spend more energy on clients, staff or business strategy. You’ll avoid sleepless nights trying to track down receipts or troubleshoot a bank feed that won’t match up.

Getting your books sorted sooner gives you peace of mind heading into the new tax year. Accurate records help you stay compliant and also support smarter decisions. Whether you’re adjusting prices, applying for funding or pitching new clients, strong bookkeeping gives you confidence and clarity.

Feeling the weight of the upcoming tax year? Don't worry, ABMV is here to help. Learn how our company bookkeeping services can streamline your financial processes and keep your business organised. Let us handle the numbers so you can stay focused on what matters most.