Running a small business in the UK is an exciting journey filled with opportunity, but let’s be real—it can also be financially overwhelming. Between staying compliant with HMRC and trying to grow your business, accounting tasks often get pushed to the bottom of the to-do list. That’s why having a solid month-by-month accounting checklist can be a lifesaver.

Whether you’re a solo entrepreneur, managing a family-run business, or balancing a side hustle with parenting duties, this guide will help you keep your books in order and avoid those last-minute tax headaches.

January: Start Fresh

• Set your financial goals for the year: Think cash flow targets, profit margins, and budgeting goals.
• Check your payroll changes: New tax year updates from HMRC are usually announced around this time. Make sure your payroll software is updated accordingly.
• Reconcile December’s accounts: Ensure your year-end balances are correct and chase up any unpaid invoices.

Tip: If you’re using cloud accounting software like Xero or QuickBooks, take advantage of their reports and dashboards to track your financial KPIs.

February: Tidy Up the Paper Trail

• Organise receipts and expenses: Go digital if you haven’t already. Tools like Dext or Hubdoc can simplify this.
• File your VAT return (if applicable): If your VAT quarter ends in December, the deadline is early February.
• Review last year’s performance: Compare your goals vs. actuals to adjust plans accordingly.

Tip: Don’t forget to account for Valentine’s Day promos if you’re in retail or hospitality—those discounts can affect your margins.

March: Prep for Year-End

• Run a stocktake: If you manage inventory, get an accurate valuation before the end of the financial year (5 April).
• Review asset depreciation: Check your fixed assets and calculate depreciation accordingly.
• Plan for end-of-year purchases: Investing in equipment or office upgrades now could help reduce your taxable profit.

Tip: Talk to your accountant about any pre-year-end tax planning opportunities—they might save you a decent sum.

April: Start of the New Tax Year

• Submit final payroll reports for the old tax year.
• Set up your payroll for the new tax year: Adjust employee tax codes, National Insurance thresholds, and student loan deductions.
• Update employee records: Include changes to addresses, pay rates, or benefits.

Tip: Now is also a good time to review your bookkeeping system. Is it working well? Could automation help?

May: Self-Assessment Prep

• Start gathering info for your Self-Assessment: If you’re a sole trader or director, it’s never too early.
• Review your supplier contracts: Check payment terms and renegotiate where needed.
• Reconcile bank and credit card statements: Ensure all business expenses are accounted for.

Tip: Keep your business and personal finances separate—it’ll make your Self-Assessment so much easier later on.

June: Mid-Year Check-In

• Conduct a mid-year financial review: Compare revenue, expenses, and profit to your original goals.
• Update your cash flow forecast: Especially important if you have a seasonal business.
• Chase late payments: Set up automated reminders for overdue invoices.

Tip: Consider offering early payment discounts to improve cash flow during slower months.

July: VAT and PAYE Deadlines

• File your quarterly VAT return (if your period ends in May).
• Pay your PAYE bill by the 22nd (if you pay electronically).
• Prepare for summer holidays: If staff are taking time off, factor that into your payroll and cash planning.

Tip: If your business slows in summer, use this time to review systems, train staff, or plan new campaigns.

August: Organise and Automate

• Review recurring expenses: Cancel unused subscriptions or tools.
• Automate repetitive tasks: Like invoice reminders or mileage tracking.
• Do a mini financial audit: Spot any discrepancies or missing receipts.

Tip: This is also a great month to review your accounting software settings. Are categories and tags set up correctly?

September: Get Ahead of Tax Season

• Prepare profit and loss reports: These will help you estimate tax liabilities ahead of January.
• Review pension contributions: Make sure you’re meeting your employer duties.
• Forecast year-end tax bills: Give yourself time to budget and plan.

Tip: If you’re a director, review your dividends and salary strategy with your accountant for the most tax-efficient mix. Many Ashford small business accountants offer tailored advice during this time, helping local businesses prepare smartly for the year-end and avoid costly surprises.

October: Deadlines Looming

• Submit your paper Self-Assessment tax return (deadline: 31st October).
• Review staff performance and bonuses: If you do year-end reviews, now’s the time to prepare.
• Update your business insurance: Double-check your coverage still meets your business needs.

Tip: Think about seasonal offers or promotions now so you’re ready for Black Friday and Christmas sales.

November: Pre-Holiday Review

• Plan for festive closures: Notify clients/customers and set up automated email replies.
• Track holiday sales performance: Start early with promotions and monitor returns.
• Prepare your budget for next year: Use your year-to-date performance as a guide.

Tip: If you offer gift cards or vouchers, make sure you’re accounting for them properly—revenue recognition rules apply!

December: Wrap It Up

• Run payroll early if you’re closing for the holidays.
• Send client thank-yous or small gifts—it’s a nice gesture that can build loyalty.
• Review your accountant relationship: Are they meeting your needs? If not, it’s a good time to shop around.

Tip: Before signing off for the holidays, back up your accounting data and make sure everything is saved securely.

Final Thoughts

Having a month-by-month accounting checklist doesn’t just help with compliance—it also gives you clarity and confidence as a business owner. With good systems in place, you can focus less on chasing paperwork and more on growing your business.

Remember: accounting doesn’t have to be scary or overwhelming. Break it down month by month, automate what you can, and don’t be afraid to ask your accountant for help along the way.