Who it's for: anyone running or helping with a year-end close in a UK SaaS or tech company, from finance assistant to financial controller.
What you'll get: a year-end checklist from planning to filing, the UK deadlines that follow it (as at October 2026), what the FRS 102 changes mean for SaaS teams, two worked examples, AI shortcuts and a one-slide summary for your boss.
Reading time: about 14 minutes. Shorter than the audit, we promise.
Why year-end is more than a big month-end
Year-end numbers go into the statutory accounts, the tax return and, for many companies, the audit. They're public, they're tested, and they're hard to change once filed.
The good news: if the monthly close is solid, year-end is mostly the hard close done carefully, plus a set of once-a-year tasks. This checklist covers both.
Key terms
- Statutory accounts: the annual financial statements a UK company files with Companies House, prepared under FRS 102, IFRS or another permitted framework.
- Hard close: a full close with every account reconciled, every estimate trued up and the period locked.
- Post-balance sheet event: something that happens after the year-end but before the accounts are signed, which may need adjusting for or disclosing.
- PBC list ("prepared by client"): the auditors' list of schedules and documents the finance team provides.
- Going concern: the directors' assessment that the company can keep trading for at least 12 months from the date the accounts are signed.
Year-end at a glance
| When | Focus | Output | Where AI helps |
|---|---|---|---|
| 8–12 weeks before | Planning | Timetable, PBC list, policy decisions | Turning last year's PBC list into a tracker |
| 4–8 weeks before | Clean-up | Balance sheet tidied; open issues resolved | Listing old reconciling items and stale balances |
| Final month of the year | Cut-off | Requests sent; contracts and invoices captured | Reading contracts for unusual terms |
| Day 1–10 after | Hard close plus year-end journals | Locked trial balance | Flagging unusual journals and large movements |
| Weeks 2–8 after | Audit and accounts | Draft accounts, audit fieldwork, adjustments | Drafting notes and answering audit queries |
| Up to 12 months after | Filing and tax | Accounts filed; Corporation Tax paid and return filed | Checking disclosures against last year |
One rule for all of it: AI drafts, matches and flags; a person reviews and signs off. Only use AI tools your company has approved for financial, customer or payroll data.
The checklist, step by step
1. Planning (8–12 weeks before year-end)
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Agree the year-end timetable with the auditors (if audited) and leadership | Dates for hard close, draft accounts, fieldwork, sign-off and filing |
| ☐ | Get the PBC list and assign an owner and date to each item | Tracker with owner, due date and status for every request |
| ☐ | Review accounting policies and anything new this year | New products, pricing, funding, share options or entities considered |
| ☐ | Check whether new standards or amendments apply this year | Written note on what changes and the expected impact |
| ☐ | Check audit exemption status (if not already audited) | Size tests reviewed against the current thresholds on gov.uk |
AI shortcut: give an approved AI tool last year's PBC list and this year's timetable. Ask it to build a tracker with columns for owner, due date, status and "changed since last year". Then go through it with the team and fill in the real owners.
2. Clean-up (4–8 weeks before)
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Clear old reconciling items on bank, payment processor and control accounts | No unexplained items older than a month |
| ☐ | Review the suspense account and clearing accounts | Nil, or every item explained and owned |
| ☐ | Agree intercompany balances with each entity | Both sides agree, in the same currency |
| ☐ | Review the fixed asset register | Assets no longer in use identified for write-off or disposal |
| ☐ | Review aged debtors and chase or provide for old balances | Bad debt provision has a clear basis |
3. The final month: cut-off
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Send cut-off reminders to the whole company | Expense claims, receipts and invoices for the year requested by set dates |
| ☐ | Get every new, renewed and changed customer contract from sales | Year-end contract list agreed to the billing system |
| ☐ | Confirm bonus, commission and holiday pay data with HR | Inputs ready for year-end accruals |
4. Hard close plus year-end journals (Day 1–10)
Run your normal hard close first: every account reconciled, every estimate trued up. Then add the year-end items.
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Deferred revenue: full contract-level review | Schedule agrees to contracts, billing and the ledger; unusual terms checked |
| ☐ | Accrued income and contract assets | Unbilled revenue supported by usage or delivery evidence |
| ☐ | Bonus and commission accruals | Based on actual results and scheme rules, with employer National Insurance |
| ☐ | Holiday pay accrual | Untaken holiday at year-end calculated and booked |
| ☐ | Capitalised development costs and commission assets | Schedules reviewed; impairment considered |
| ☐ | Share-based payment charge | Charge agreed to the option schedule and any valuation |
| ☐ | Leases | Lease schedule updated under the framework that applies this year |
| ☐ | Fixed asset write-offs and depreciation | Register agrees to the ledger; unused assets written off |
| ☐ | FX revaluation of all foreign currency balances | Year-end rates used and documented |
| ☐ | Corporation Tax and deferred tax | Estimate prepared, often with the tax adviser; R&D claims considered |
| ☐ | VAT, PAYE and pension control accounts | Agreed to returns and payments |
| ☐ | Lock the year | Trial balance issued to auditors; further changes only by recorded adjustment |
AI shortcut: give AI the year's contract list and the deferred revenue schedule. Ask it to list contracts with non-standard terms (free months, setup fees, multi-year discounts, termination rights) and whether each appears in the schedule. A person then checks the treatment of each one.
5. Audit and accounts (weeks 2–8)
| Task | What "done" looks like | |
|---|---|---|
| ☐ | Deliver PBC items on the agreed dates | Tracker shows every item delivered |
| ☐ | Prepare draft statutory accounts | Primary statements and notes agree to the locked trial balance |
| ☐ | Prepare the going concern assessment | Cash forecast for at least 12 months from expected sign-off, with downside scenario |
| ☐ | Log every audit adjustment | Agreed adjustments posted; unadjusted differences listed |
| ☐ | Check post-balance sheet events up to sign-off | Events reviewed and adjusted or disclosed |
| ☐ | Get the accounts approved and signed | Board approval minuted; letter of representation signed |
AI shortcut: give AI last year's signed accounts and this year's draft. Ask it to list notes that changed, numbers that don't cross-reference between notes and statements, and disclosures in last year's accounts that are missing this year. Check every point it raises against the trial balance.
6. Filing and tax
As at October 2026, the main UK deadlines for a private limited company are:
| What | Deadline (from gov.uk) |
|---|---|
| Annual accounts to Companies House | 9 months after the financial year-end (first accounts have a different deadline) |
| Corporation Tax payment | 9 months and 1 day after the end of the accounting period, unless the company pays in quarterly instalments |
| Company Tax Return (CT600) | 12 months after the end of the accounting period |
| Quarterly instalment payments | For large companies (broadly, taxable profits above £1.5 million a year); dates depend on the accounting period |
Some filing changes to know about, as at October 2026:
- HMRC's free online service for filing company accounts and tax returns closed on 31 March 2026. Company Tax Returns now go through commercial software.
- Companies House plans to require all companies to file accounts through software from April 2028.
- Director identity verification has been required since 18 November 2025. Existing directors typically confirm their identity with the company's next confirmation statement.
Rules and dates change, so check gov.uk for your company's own dates each year.
FRS 102 changes: what SaaS teams typically need to look at
The FRC's periodic review amendments to FRS 102 apply to accounting periods beginning on or after 1 January 2026, with early adoption allowed. For a December year-end company, that means the year to 31 December 2026 is typically the first year. The two changes most SaaS teams notice:
- Revenue: Section 23 moves to a five-step model similar to IFRS 15: identify the contract, identify the separate promises (performance obligations), set the price, split the price across the promises, and recognise revenue as each promise is delivered. Many SaaS companies already follow a similar approach, but setup fees, bundled services and discounts are worth re-checking.
- Leases: most leases come onto the balance sheet as a right-of-use asset and a lease liability, with exemptions for short-term and low-value leases. Office leases are the usual one for SaaS. Rent in the P&L is replaced by depreciation and interest, which changes EBITDA.
Micro-entities using FRS 105 get similar revenue changes, with extra simplifications, but not the lease change. The transition rules have choices, so many teams work through them with their auditors or advisers.
If you report under US GAAP (ASC 606)
Revenue under ASC 606 already follows the same five-step model, so the revenue change mostly brings UK accounts closer to US group reporting. Leases differ: ASC 842 keeps a split between operating and finance leases for lessees, while the new FRS 102 (like IFRS 16) generally uses one model. If you report to a US parent, expect reconciling items on leases.
Worked example 1: holiday pay accrual
MonthEndClub Co Ltd is a fictional UK SaaS company with a 31 December year-end. Its holiday year matches the calendar year, and staff can carry up to five days into the next year.
At 31 December, HR reports 46 untaken days carried forward across the team. Average daily pay is £240.
46 × £240 = £11,040. Employer National Insurance and pension on this would also typically be accrued at the rates in force; they're left out here to keep the numbers simple.
Last year's accrual was £8,400. The journal adjusts the balance to the new figure: £11,040 − £8,400 = £2,640.
| Account | Dr | Cr |
|---|---|---|
| Staff costs: holiday pay | £2,640 | |
| Holiday pay accrual | £2,640 |
The holiday pay accrual now stands at £8,400 + £2,640 = £11,040, supported by HR's report of untaken days.
Worked example 2: writing off unused assets
During the clean-up, the team finds 6 laptops on the fixed asset register that were lost or broken during the year. Each cost £1,500 and has accumulated depreciation of £900.
Net book value per laptop: £1,500 − £900 = £600. Total: 6 × £600 = £3,600. Total cost: 6 × £1,500 = £9,000. Total depreciation: 6 × £900 = £5,400.
| Account | Dr | Cr |
|---|---|---|
| Accumulated depreciation: computer equipment | £5,400 | |
| Loss on disposal of fixed assets | £3,600 | |
| Fixed assets at cost: computer equipment | £9,000 |
Debits £5,400 + £3,600 = £9,000, equal to the £9,000 credit.
Common mistakes and audit watch-outs
- Deferred revenue not checked to contracts. Monthly roll-forwards can drift from the contracts. Year-end is the time for a full contract-level review.
- Missing the FRS 102 changes. For many companies, 2026 is the first year of the new revenue and lease rules. Leaving it to the audit makes for a long audit.
- Going concern left to the end. It needs a forecast, a downside case and board approval. Start it early.
- Audit adjustments not posted to the ledger. If agreed adjustments aren't posted, next year's opening balances won't match the signed accounts.
- Trusting AI cross-checks blindly. AI can miss a note or misread a figure. Treat its list as a starting point, not a sign-off.
- Sharing audit files in unapproved AI tools. Accounts, payroll and customer data only go into tools your company has approved.
Tools that can help
Accounting software such as Xero, QuickBooks, Sage or NetSuite supports period locks and audit trails. Accounts production and tax software handles the statutory accounts and Company Tax Return. A tracker in Excel or Google Sheets keeps the PBC list moving, and Float helps with the going concern forecast. Tools speed up year-end; they don't replace the checklist or the review.
Take it to your boss: one slide
A calmer year-end
The problem: last year, most year-end work started after the year closed. Old reconciling items, contract reviews and the going concern forecast all landed during the audit.
Three changes
- Plan 12 weeks out: timetable and PBC tracker agreed with the auditors, with an owner for every item.
- Clean up before year-end: old reconciling items, stale accruals, fixed assets and intercompany cleared in the last two months.
- Get ahead on the big judgements: FRS 102 revenue and lease impact, and the going concern forecast, drafted before the hard close. AI drafts the first versions; people review.
| Risk | Control |
|---|---|
| Revenue misstated | Contract-level deferred revenue review at year-end |
| New FRS 102 rules applied late or wrongly | Impact paper agreed with auditors before year-end |
| Missed filing or tax deadlines | Deadlines on the year-end timetable, with owners |
| AI errors or data leaks | Approved tools only; every AI output reviewed |
How we'll measure it: PBC items delivered on time, number of audit adjustments, and weeks from year-end to signed accounts.
Rates, thresholds and rules in this guide
Figures were checked against the pages below in October 2026. They change regularly (often each April or at Budget time), and we can't guarantee they're still current or right for your situation. Always check the official page before relying on them.
- Audit exemption for private limited companies (GOV.UK): audit exemption size tests
- Preparing and filing Companies House accounts (GOV.UK): 9-month accounts deadline and first accounts
- Pay your Corporation Tax bill (GOV.UK): 9 months and 1 day payment deadline
- Company Tax Returns (GOV.UK): 12-month return deadline
- Pay Corporation Tax if you're a large company (GOV.UK): quarterly instalments above £1.5 million profits
- The online accounts and Company Tax Return service is closing (GOV.UK): closure on 31 March 2026
- Companies House update to accounts filing from April 2028 (GOV.UK): software-only accounts filing
- Companies House confirms identity verification rollout from 18 November 2025 (GOV.UK): director identity verification
- FRS 102 (Financial Reporting Council): effective date and early application of the Periodic Review 2024 amendments
- FRS 102 Explainer: Periodic Review 2024 changes (Financial Reporting Council): five-step revenue model and on-balance-sheet leases
- Periodic Review 2024: key changes (Financial Reporting Council): how the changes apply to FRS 105 micro-entities
Key takeaways
- Year-end is the hard close done carefully, plus once-a-year tasks. Start planning 8–12 weeks before.
- Clean up the balance sheet before the year ends, not during the audit.
- Review deferred revenue at contract level, and check the FRS 102 revenue and lease changes.
- Keep the UK deadlines on the timetable: accounts at 9 months, tax payment at 9 months and 1 day, tax return at 12 months.
- Use AI for trackers, first drafts and cross-checks; keep review and sign-off with people.
FAQs
When should year-end planning start?
Many teams start 8 to 12 weeks before the year-end, so the timetable, PBC list and policy questions are settled before the hard close.
Do the FRS 102 changes apply to my company this year?
They apply to accounting periods beginning on or after 1 January 2026, unless adopted early. A company with a 31 December year-end would typically apply them for the first time in its 2026 accounts. Micro-entities using FRS 105 get similar revenue changes, but not the lease change. Check the transition rules with your auditors or advisers.
Can AI help with the audit?
It can help build the PBC tracker, draft notes, compare this year's accounts with last year's and draft replies to audit queries. Every output is checked against the ledger and source documents, and only approved AI tools are used for company data.
Related guides
- Surviving Your First Audit: What to Prepare and When
- Soft Close vs Hard Close, and What Changes at Quarter-End
- How to Build and Reconcile a Deferred Revenue Schedule
- Keeping Audit-Ready Working Papers Every Month
More in Busy Season guides.
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This guide is general information about common practice. It isn't tailored to any business, and standards, tax rules and figures change. Check your own circumstances, the latest rules and, where needed, a qualified professional before acting.
Last reviewed: October 2026.