It is the end of an accounting period, usually 12 months.
For a sole trader, year end is 5th April.
For a limited company the year end date is dictated by the company incorporating date.
At year end a number of processs take place to close off the books.
Often referred to as Year End Adjustments.
An essential task to ensure financial reports are accurate.
Adjustments might include the following examples:
- Depreciation charges
- Reclassifications
- Adjustments of errors
- Debts and prepayments
If someone is unsure what adjustments to make, they should reach as for help.
Bookkeeping Terms A to Z 