A practical guide for business owners to close the year with confidence.
The end of the year can creep up quickly. One minute you’re planning Q4 campaigns, and the next you’re trying to work out whether you should buy that new laptop before the tax year ends.
To help you finish strong — and start the new year with clarity — here’s a practical, business-friendly checklist of seven things to tackle before 31 December.
1. Review Your Year-to-Date Financials
Before making any decisions, get a clear picture of where you stand.
Look over:
- Profit & loss for the year
- Cashflow trends
- Outstanding invoices and payments
- Your tax position (estimated corporation tax, VAT, PAYE)
This gives you the insight you need to make informed decisions about spending, saving, or reinvesting. If anything looks unclear, it’s far better to catch it now than when you’re preparing year-end accounts.
2. Chase and Clean Up Your Debtors
December is the perfect time to tidy your books.
Follow up on:
- Aged invoices
- Part payments
- Clients who have gone quiet
Even if you don’t receive full payment by the end of the month, having a plan improves your cash position — and strengthens your financial accuracy going into the new year.
Tip: Consider offering a small incentive for early settlement if appropriate.
3. Decide on Dividends Before Year-End
If you plan to withdraw dividends, ensure:
- Your company has enough distributable profits
- You create proper documentation (board minutes + vouchers)
- The amounts align with both cashflow and tax planning
Dividends taken before 31 December fall into this year’s planning window. Leaving it until January may change your tax position.
Not sure how much you can or should take? That’s exactly where year-end tax planning with your accountant helps.
4. Make Any Necessary Tax-Deductible Business Purchases
If you’ve been delaying certain investments, ask yourself whether buying them now will benefit the business and reduce your tax bill.
Relevant purchases might include:
- Equipment and machinery
- Computers or tech upgrades
- Tools, software, or subscriptions
- Office furniture
- Training or professional development
Under the Annual Investment Allowance (AIA) and other reliefs, many capital purchases can qualify for full tax relief — but only if made before year-end.
A good rule: don’t spend just to save tax. Spend when it benefits your operations, efficiency, or growth.
5. Review Staff Bonuses and Payroll Planning
If you plan to pay bonuses, make sure they’re processed in time and correctly documented for PAYE and NIC.
Year-end is also the time to:
- Review salaries (including your director’s salary level)
- Plan for any staffing changes
- Reassess whether you’re using the most tax-efficient payroll structure
Payroll adjustments made before year-end can strengthen both your tax position and your team morale.
6. Check Your Allowances, Reliefs & Deadlines
A quick review with your accountant can ensure you’re making the most of available reliefs, such as:
- Capital allowances
- R&D tax relief
- Super-deduction (where still applicable)
- Loss relief options
- Pension contributions
- VAT schemes such as cash accounting or the flat rate scheme
Even small adjustments here can make a surprisingly big difference.
7. Plan Ahead for January and Beyond
Once you’ve wrapped up the essentials, take a step back and consider:
- What worked financially this year?
- What needs attention?
- Are your bookkeeping processes helping or hindering you?
- Do you need better systems, forecasting, or support?
Setting intentions now — with clear financial targets — puts you on the front foot from day one of the new year.
Need Help Navigating Year-End? We’re Here.
At Kingston Burrowes, we work with business owners every day to make year-end smoother, clearer, and more tax-efficient.
Whether you want help:
- reviewing your accounts
- planning dividends
- forecasting cashflow
- making tax-efficient year-end decisions
- or preparing for next year with confidence
…our team is ready to support you.
