How to prepare for the end of the tax year

How to prepare for the end of the tax year

The end of the tax year is almost here! Follow this step-by-step guide to help you prepare.

Make sure you’ve submitted your Self Assessment tax return

Self Assessment tax returns were due 31 January 2021. So, make sure you’ve submitted yours. If you missed the deadline you need to submit it and pay your tax as soon as possible to reduce any penalties you may owe.

Keep all your records

You need to keep all your records in case of an inspection. Check you have everything you need and keep them organised. If you’re using an accounting software like Bokio, upload any outstanding receipts, transactions or supplier invoices. You can also upload other documents too like bank statements, customer statements and other relevant files.

Check your accounts

Go through your accounts to ensure they are correct! Get help from an accountant or go through them yourself to make sure you’ve recorded everything correctly or if there are any transactions missing.

If you need help from an accountant you can get in touch with one to discuss your needs using our Find an accountant service.

Review your reports

When you use an accounting software that generates automated reports, reviewing them is easy. Checking your reports at year end is important, so you can see how your business performed and if there’s any money for investment, or if you need to look at your budget for the next tax year.

Calculate your tax

The figures from your reports can help you calculate your tax. Knowing how much tax is due means you can put money aside for the deadline and be prepared. If you aren’t sure which taxes could affect your business, check out our guide to taxes here.

Think about switching software

The end of the tax year is the perfect time to switch accounting software. You won’t have to move so much information which will make the process smoother. If you’re looking for different features, want to save time and money or need to be Making Tax Digital compliant then you should consider making the switch. You can read more about why switching accounting software could be right for you here.

Start bookkeeping in your new year

Once the new tax year begins you can start bookkeeping again! Bokio is a great free accounting software for doing your bookkeeping, invoicing and expenses all in one place.

We have everything you need to help you prepare for your Self Assessment tax return, submit your VAT Return for Making Tax Digital and keep the right financial records.

Accounting is kept simple with Bokio, so you have more time to spend running your business.