For growing companies, the end of financial year (EOFY) is a moment to take stock of how far the business has come. It’s the time when finance teams review performance and prepare reports to meet HMRC deadlines and assess overall performance.
But as teams expand, so do the moving parts. More transactions, more departments, and tighter deadlines can make year-end close feel overwhelming if processes aren’t in sync.
Knowing how the UK financial year works — from key deadlines to reporting requirements — helps finance leaders plan ahead and keep things running smoothly across teams.
What is the difference between financial year and tax year in the UK?
In the UK, a financial year (also called a fiscal year) is the 12-month period a company uses to track its income, expenses, and overall performance. Most businesses adhere to the calendar year — from 1st January to 31st December — but some opt for a different period that better suits their operations. Knowing when the financial year-end is helps you plan departmental budgets↗ and prepare for timely book closure.
The UK tax year is different. It runs from 6th April to 5th April the following year, and is the time frame HMRC uses to calculate Income Tax, Corporation Tax, and National Insurance.
Companies may choose a financial year that doesn’t match the tax year to more closely align reporting to their operational cycles or busy seasons. While it gives a more accurate picture of performance, it also means tracking transactions carefully so income and expenses are reported correctly for tax purposes.
For growing businesses, understanding both periods is key. It helps teams make sure they record expenses in the right period, reconcile accounts accurately, and maintain clear visibility over spend. This way, the end of the financial year is smooth and error-free.
End of financial year: Key dates for UK businesses
EOFY can turn into a last-minute rush if reconciliations and filings pile up. Planning ahead lets finance teams close the books accurately and meet HMRC deadlines.
If your business follows a 1st January to 31st December accounting period, here’s a quick guide to the most important UK fiscal year and tax year dates to keep on your radar:
These are the main dates for most UK businesses, but your company may have additional dates to track, such as payroll or internal reporting. Using tools like payroll software or accounting platforms can help you keep everything organised and reduce end-of-year pressure.
Understanding financial quarters in the UK
Many UK businesses divide their accounting year into four financial quarters to make reporting and performance tracking easier. If your company’s financial year aligns with the calendar year, the quarters are:
- Q1: 1 January to 31 March
- Q2: 1 April to 30 June
- Q3: 1 July to 30 September
- Q4: 1 October to 31 December
Some companies pick a different financial year, so their quarters shift accordingly. Knowing your company’s specific quarter dates helps your finance team stay on top of cash flow and year-to-date↗ (YTD) figures.
Here are a few best practices↗ to keep quarterly reporting smooth and efficient:
- Set reminders before official filing dates for VAT returns or other quarterly obligations.
- Standardise expense reporting and approvals across departments so everyone submits data consistently.
- Use automation↗ to pull data directly from your accounts payable and reimbursement systems, reducing time spent on manual checks.
Preparing your business for year-end
Getting your books ready early saves time and gives you the clarity you need to make smarter decisions for the UK fiscal year.
Here’s how to prepare your business for year-end step by step.
1. Reconcile every account
Start by making sure your records match across the board. Check every bank statement, credit card record, and supplier invoice against your accounting system. With everything lined up, you’ll be able to:
- Detect missing or duplicate entries early
- Ensure cash flow statements reflect reality
- Prevent unpleasant surprises when submitting Corporation Tax or VAT returns
Tools like Moss’ spend management system help finance teams close the year faster by matching transactions automatically and eliminating errors that slow down the year-end close.
2. Audit and categorise expenses
For financials to tally properly, every transaction must be accounted for. Go through every expense — from corporate card payments to employee reimbursements — and make sure it’s logged in the right category.
Check that:
- Each transaction has a valid receipt or invoice attached
- Expense categories align with your chart of accounts (a structured list of all accounts your business uses to track its financial transactions)
- Employee reimbursements follow company policy
If your team manages small, recurring payments — like office supplies or staff allowances — an imprest system↗ can help. It sets a fixed petty cash amount that’s regularly replenished and recorded, making it easier to track minor expenses and avoid discrepancies at the end of your financial year.
Automation helps here, too. Moss, for instance, automatically captures receipts, links them to payments, and flags policy violations — so your financial reporting↗ stays consistent and audit-ready.
3. Check departmental budgets and spending
If your business is growing, it’s easy for departments to drift off-budget. Review each team’s spend, compare it to your forecasts, and look for patterns, like repeated overspending or unapproved purchases.
Keeping an eye on cross-departmental budgets helps you manage cash flow↗ and set more realistic plans for the next financial year.
4. Double-check payroll, pensions, and deductions
Make sure all Pay As You Earn (PAYE), National Insurance, and pension contributions are correct and reported according to HMRC guidelines.
Confirm that:
- Employee tax codes are up to date
- Bonuses and overtime are correctly processed in payroll
- Your payroll software aligns with the latest HMRC guidelines
Mistakes here can affect both employees and business compliance, so take your time to get it right.
5. Run internal checks
Before you officially close the year, do a final internal review. Check your ledgers, confirm all accruals and prepayments, and review any large one-off costs. This quick audit helps your external accountant (or auditor) move faster and keeps your financial reporting airtight.
6. Finalise your core financial statements
As you close your books, finalise the three key financial statements:
- Profit & loss (P&L): Shows revenue, costs, and overall profitability
- Balance sheet: Captures assets, liabilities, and equity at year-end
- Cash flow statement: Summarises cash inflows and outflows for the period
These documents form the foundation of your corporation’s tax return and provide crucial insights for investors and board members.
7. Back up your financial data
Finally, store everything securely. HMRC requires businesses to keep records for at least six years, so make sure your data is backed up in the cloud and easy to access.
Note: Completing these steps by your financial year-end (like 31st December) doesn’t wrap up your tax obligations — the UK tax year runs from 6th April to 5th April, so tax returns are due later. But having your accounts reconciled and reports finalised well before the tax year ends makes filing Corporation Tax and VAT returns much easier. Even if your financial and tax years don’t perfectly align, early preparation keeps year-end stress-free and accurate.
Common pitfalls and how to avoid them
Even experienced finance teams hit a few bumps during the year-end close. Here’s what to watch out for — and how to stay ahead.
1. Late reconciliations
When you leave reconciliation to the last minute, errors pile up and deadlines get tight. Build reconciliation into your monthly routine to reduce workload and improve accuracy.
2. Missing expense approvals
Unapproved or late expenses distort your year-to-date numbers. Set clear internal deadlines for expense submissions and automate reminders to employees and managers.
3. Poor communication between departments
Finance shouldn’t work in isolation. Stay in touch with department heads about outstanding invoices, pending budgets, and upcoming purchases. It’ll make your reporting more accurate.
4. Reliance on manual processes
Manual data entry is one of the biggest barriers to a clean year-end. Automate what you can, from invoice capture to approval workflows, to reduce admin time and boost accuracy.
5. Only compliance focus
Yes, compliance is key. But the end of the financial year is also a chance to reflect. Look at your spending patterns and see where processes could run smoothly. Build those lessons into your next year-end best practices.
How Moss streamlines end-of-year processes for scaling teams
The end of the financial year can easily turn into a rush of reconciliations and last-minute fixes — but it doesn’t have to. Moss helps scaling finance teams close the books faster and keep full control over company spend.
With Moss, you can automate expense management, reimbursements, and accounts payable, so approvals move quickly and every transaction is logged in real time. Controllers gain instant visibility over company spend, helping them enforce policies and stay compliant with HMRC requirements.
When finance teams automate their workflows with Moss, they cut down on manual errors and gain the insights needed to make smarter decisions all year round.
If you’re ready to simplify your year-end close and start the next fiscal year with more control, see how Moss’ Advanced Controlling↗ can help.
