Preparing for Your Annual Accounts

4. Planning

4.1 How much of the accounting work will you do yourself?

• If you use a manual accounting system, all the basic arithmetical work should be done by the book-keeper.Every column of figures should add up correctly and tally with all the invoices, cheque books, bills, paying-in books and most importantly, with the bank statements.
• Depending on your company's accounting expertise, you may be able to produce a trial balance. This lists the totals of the credit entries and the debit entries in the accounts, and shows that they agree.

4.2 Ask whether there are any tax planning steps you should take before the year end.

• For example, you may be advised to bring forward certain purchases, so that they count in the current accounting period.

4.3 Ask what other information and explanations the accountants will need. These are likely to fall into four key areas:

• Purchases and sales (see 5).
• Stock (see 6).
• Fixed assets (see 7).
• Employees (see 8).

4.4 Book a date for a feedback (closing) meeting with the accountants (see 9).