As 2025 comes to a close, SME owners have an excellent opportunity to review and strengthen their financial position. Completing key year-end tasks not only ensures compliance but also provides clarity, control, and a strong foundation for a successful 2026. At Gallagher Keane, we’ve prepared a practical checklist to help business owners and finance teams efficiently navigate the essential steps before the year ends.

1.Review Management Accounts Thoroughly

Take a detailed look at your management accounts, including the profit and loss, balance sheet, and cash flow statements. Identify any unusual variances, ensure all income and expenses are accurately recorded, and confirm that your accounts reflect the true performance of your business.

2. Reconcile All Balances

Accurate reconciliations are key to a smooth year-end. Review bank statements, supplier and customer accounts, and intercompany balances to resolve discrepancies. Ensuring reconciled accounts reduces the risk of errors in statutory reporting and enhances decision-making.

3. Prepare Year-End Payroll

Payroll can be a significant source of year-end adjustments. Confirm all employee pay, bonuses, pensions, and deductions are correctly processed. Make sure payroll taxes are fully accounted for and ready for submission, avoiding any potential penalties.

4. Assess Tax Liabilities

Review your corporation tax, VAT, and any other statutory obligations. Early assessment allows for effective tax planning, optimising your position and helping you avoid surprises. Consider potential reliefs or incentives that may apply before year-end.

5. Ensure Financial Reporting Is Complete and Accurate

Verify all journal entries, accruals, and prepayments are correctly recorded. Accurate financial reporting not only simplifies statutory filings but also provides a reliable basis for strategic planning in the coming year.

6. Review Budget vs Actual Performance

Compare actual results against budgets and forecasts. Understanding variances provides insights into business performance and helps inform planning, cost management, and investment decisions for 2026.

7. Evaluate Cash Flow and Working Capital

Assess your cash position and working capital requirements. Ensuring liquidity at year-end allows your business to meet obligations, invest strategically, and start the new year in a strong position.

8. Document Key Decisions and Outstanding Items

Maintain clear records of significant transactions, contracts, and financial decisions. A well-documented year-end process ensures continuity and provides valuable reference points for audits, reporting, and future planning.

A structured, thorough approach to year-end finance ensures your business closes the year efficiently, minimises risk, and positions you for growth in 2026.

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