February 06, 2026
Article
With MTD for Income Tax in mind (see article by Lindsey Johnson), it is more important than ever to ensure your bookkeeping software is as up to date as possible.
Below is a checklist of processes to complete at year-end.
Although these are tailored to Xero, many will also apply to other bookkeeping systems.
1. Bank Reconciliations
Ensure that all transactions are fully reconciled for the year. In Xero, running a Bank Reconciliation Report will confirm this and allow you to check the calculated balance against your physical or online bank statement.
Path: Bank account > Vertical ellipsis > Reconciliation report
Continue to reconcile post year-end transactions, as these can assist with preparing the accounts.
2. VAT Return
Ensure that the VAT return covering your year-end has been submitted and any supporting calculations are saved.
3. Mis-postings & Duplicates
By running an Account Transactions Report in Xero, you can review all postings made during the year and identify any mis-postings or duplicate entries (for example, duplicated bills or spend money transactions).
Path: Accounting > Reports > Account Transactions (Select your accounting period in the date range)
4. Debtors (Amounts Owed to You)
Check your debtors using the Aged Receivables Detail report at your year-end date.
Path: Accounting > Reports > Aged Receivables Detail
5. Creditors (Amounts You Owe to Suppliers)
Check your creditors using the Aged Payables Detail report at your year-end date.
Path: Accounting > Reports > Aged Payables Detail
Ensure this includes all bills dated within your accounting period that were paid after the year end.
6. Uploading Documents (Invoices / HP Agreements)
Uploading PDFs/photos of documents into Xero can ensure information is accessible and saved with the transaction in Xero.
Documents can be attached to:
- Bills
- Invoices
- Receive/Spend Money transactions
On the reconcile screen, click “Add Details” and look for the document upload icon (paper with a folded corner).
Many suppliers now issue bills by email. Xero also allows you to email documents directly into Xero using your custom files email address.
Path: Business name > Files > Email address (top right corner)
7. Stock Sheets
We aim to issue stock sheets as close to your year-end as possible. Alternatively, please record your stock in your preferred format as close to the year-end date as possible.