Year-End Accounting Checklist for UK Limited Companies: A Detailed Guide for 2025

For UK limited companies, preparing and filing year-end accounts is a vital legal requirement that ensures compliance with HMRC and Companies House regulations. Accurate year-end accounts not only help you avoid costly penalties but also provide a clear financial snapshot to support business decisions, attract investors, and maintain transparency with stakeholders.

At Filing Accounts, we specialise in affordable, hassle-free accounting and tax filing services tailored for small businesses across London, Hounslow, Feltham, Richmond, and surrounding areas. This detailed year-end accounting checklist will guide you through the essential steps to prepare your accounts efficiently and compliantly.

What Are Year-End Accounts?

Year-end accounts typically include:

• Profit and Loss Account: Summarises your company’s income and expenses over the financial year.
• Balance Sheet (Statement of Financial Position): Shows your company’s assets, liabilities, and equity at the year-end date.
• Directors’ Report: Provides an overview of company activities, significant events, and financial position.
• Notes to the Accounts: Offers detailed explanations of accounting policies and specific financial statement items.
• Auditor’s Report: If applicable, an independent auditor’s opinion on the accounts.

These documents must comply with the Companies Act 2006 and relevant accounting standards to ensure accuracy and transparency.

Comprehensive Year-End Accounting Checklist

1. Complete All Bookkeeping and Record-Keeping
Ensure all financial transactions, including sales, purchases, expenses, and receipts, are accurately recorded and reconciled. Using cloud accounting software such as Xero or QuickBooks can improve organisation and real-time tracking, reducing errors.

2. Reconcile Bank and Credit Card Statements
Match your bank and credit card records against your accounting ledger to identify and resolve discrepancies before finalising accounts.

3. Review Debtors and Creditors
Check outstanding customer invoices and follow up on overdue payments to improve cash flow. Review supplier invoices and resolve any disputes or missing documentation.

4. Verify Fixed Assets and Inventory
Confirm all fixed assets are recorded correctly, including any additions, disposals, or impairments. Conduct a physical stocktake and reconcile inventory records to ensure accurate valuation.

5. Make Year-End Adjustments
Prepare necessary journal entries for accruals (unpaid expenses), prepayments (services paid in advance), depreciation of assets, and write-offs for bad debts. These adjustments align your accounts with the correct accounting period.

6. Prepare Financial Statements
Work with your accountant to draft the profit and loss account, balance sheet, directors’ report, and notes to the accounts. Ensure all figures comply with UK accounting standards and legal requirements.

7. Review Tax Calculations and Planning
Estimate your corporation tax liability, considering allowable expenses, reliefs, and tax credits. Proactive tax planning can help minimise liabilities and optimise cash flow.

8. File Your Accounts and Tax Returns on Time
Submit your year-end accounts to Companies House and your Company Tax Return (CT600) to HMRC before deadlines. The usual deadline for filing accounts is nine months after your financial year-end, and tax returns must be filed within twelve months. Late filing can result in penalties starting at £150 and increasing over time.

9. Backup and Secure Your Financial Records
Ensure all accounting data and supporting documents are securely backed up, preferably using cloud storage, to prevent data loss and facilitate future audits or enquiries.

10. Seek Professional Support When Needed
If you’re unfamiliar with accounting regulations or your finances are complex, working with expert accountants in London, Hounslow, Feltham, or Richmond can ensure accuracy, compliance, and peace of mind.

Client Testimonials

“Filing Accounts made our year-end process straightforward and stress-free. Their expertise as Hounslow accountants helped us meet all deadlines with confidence.” – Sarah M., Small Business Owner

“Thanks to Filing Accounts, we filed our Richmond company accounts on time without any hassle. Their affordable service is a lifesaver for small businesses.” – James T., Director

“Professional, reliable, and affordable Feltham accountants. They helped us understand our tax obligations and saved us money.” – Priya S., Startup Founder

Why Choose Filing Accounts?

• Local expertise as trusted accountants in London, Hounslow, Feltham, and Richmond
• Affordable, transparent pricing tailored for small businesses
• Use of modern cloud accounting software for accuracy and efficiency
• Proactive tax planning and personalised support
• Timely filing to avoid penalties and ensure compliance

Final Thoughts

Preparing year-end accounts can be complex, but with a clear checklist and expert support, UK limited companies can meet their legal obligations smoothly and on time. Filing Accounts offers affordable, hassle-free accounting and tax filing services designed to simplify your year-end process and help your business thrive.

Contact us today to learn how we can assist with your year-end accounts filing in London, Hounslow, Feltham, Richmond, and beyond.