Step 1: Organise Receipts and Invoices

Gather all receipts, invoices, and financial documents. Ensure they are:

• Clearly labelled with dates, funder, activity and amounts.
• Matched to the corresponding income or expenditure entry in your financial records.
• Stored securely, whether physically or digitally, for easy access during audits or reviews.

Tip: Using accounting software can simplify this step by automatically attaching digital copies of invoices to transactions.

Step 2: Reconcile All Bank Accounts

Bank reconciliation ensures your records match your bank statements. Check that:

• All transactions are recorded accurately in your cashbook or accounting system.
• Unexplained discrepancies are investigated and corrected.
• Outstanding payments are tracked and followed up.

Regular reconciliation throughout the year makes this task much easier when year-end arrives.

Step 3: Review Payroll Records and Pension Contributions

Payroll errors can be costly and time-consuming to fix. Ensure that:

• Staff records are up to date, reflecting any changes in pay rates, bonuses, or deductions.
• Pension contributions are accurately calculated and paid.
• All payroll liabilities are accounted for in your year-end figures.

Tip: If you use payroll software, review its reports to confirm accuracy.

Step 4: Ensure Grant Funding Is Properly Recorded

Grant funding often comes with restrictions and reporting requirements. To stay compliant:

• Clearly separate restricted and unrestricted funds in your accounts.
• Ensure grant income is matched to corresponding expenditure.
• Prepare supporting documentation to demonstrate how grants have been used.

Accurate grant tracking reduces the risk of funders questioning your reports.

Step 5: Finalise Asset Registers and Depreciation Calculations

Your asset register should reflect all major purchases and disposals. Ensure that:

• Newly acquired assets are listed with appropriate details (e.g. purchase date, cost, expected lifespan).
• Depreciation is calculated correctly to reflect the reduction in asset value.
• Any disposals are recorded, with proceeds accounted for appropriately.

Tip: Having a clear asset register simplifies insurance claims and budget planning.

Conclusion: Engage Your Accountant Early

Working with your accountant well before the year-end deadline can save you time, reduce errors, and improve your financial reporting. An accountant can:

• Spot potential issues early.
• Advise on accounting adjustments.
• Ensure compliance with regulations.

By preparing now, you’ll enjoy a smoother year-end process and start the new financial year feeling confident in your organisation’s financial position.