What’s the easiest way to prepare accounts at the end of the tax year?

Why year-end accounts feel hard (and how to make them easy)

Preparing accounts at the end of the tax year can feel like trying to rebuild a jigsaw puzzle after someone has shaken the box. You know the pieces are all there—sales, expenses, bank transactions, receipts, mileage, subscriptions, payroll (if you have it), and maybe VAT or sales tax—but they’re scattered across emails, apps, pockets, and bank feeds. The “easiest way” to prepare year-end accounts is not a single magic trick. It’s a simple system that makes your numbers accurate by default, so year-end becomes a tidy review instead of a frantic rescue mission.

This article walks you through a practical, low-stress approach. The aim is to get your books clean, your invoices consistent, and your records complete—without needing to become an accountant. Along the way, you’ll see how a simple invoicing routine can remove most of the pain. If you send invoices, quotes, or payment reminders, using a free invoicing tool like invoice24 can be the anchor of your year-end workflow: it keeps your income records consistent, helps you avoid missing sales, and gives you an always-up-to-date picture of what you billed and what you’re owed.

The easiest way in one sentence

The easiest way to prepare accounts at the end of the tax year is to keep your invoicing clean and consistent, reconcile your bank regularly, store proof for every expense, and run a structured year-end checklist that turns your bookkeeping into a set of quick confirmations.

That sentence hides the key insight: “easy” comes from doing small, repeatable steps that prevent chaos. If you’ve left everything until the last week, don’t worry—this guide also includes a “catch-up method” that’s realistic, even if your paperwork is messy.

Step 1: Lock down your invoicing first (because income is the backbone)

Year-end accounts start with revenue: what you sold, when you sold it, and whether you were paid. If income is missing or duplicated, everything else becomes uncertain. This is why the quickest win is to get your invoicing process under control.

Using invoice24 as your invoicing hub simplifies income tracking because your invoices are created in one place, numbered consistently, and tied to customer details. When year-end arrives, you shouldn’t be hunting through sent emails, Word documents, or random PDFs to figure out what you billed. You should be able to see a clear list of invoices issued, totals by month, and outstanding amounts at a glance.

Here’s what “locking down invoicing” means in practice:

1) Use one invoicing system for the whole year. If you used multiple tools, consolidate now. Even if you keep other tools for accounting, make invoice24 your single source for creating and storing invoices so the record is consistent.

2) Ensure every sale is invoiced. If you sometimes “forget” to invoice smaller jobs, year-end accounts become guesswork. Decide that every billable job gets an invoice—even if it’s small.

3) Keep your invoice numbering consistent. Gaps can happen, but they should be explainable (voided invoice, cancelled job, etc.). Consistency reduces questions later.

4) Record payment status. Knowing what’s been paid and what’s still owed is essential for year-end decisions. A simple routine in invoice24—marking invoices as paid when the money hits—makes it obvious what’s outstanding.

If you’ve been inconsistent all year, the easiest catch-up method is to rebuild your invoice list from your bank deposits and email history, then recreate missing invoices in invoice24 so you have a clean, searchable record moving forward.

Step 2: Separate business and personal money (even if you’re already at year-end)

If your business and personal spending are mixed in one bank account, preparing accounts is automatically harder. It’s still possible, but you’ll spend more time classifying transactions and proving what was business-related.

The easiest approach is to use a dedicated business account and (if relevant) a dedicated business card. If you can’t change the past, you can still change the future: open a separate account now and use it from today forward. For the year just ended, you’ll need a clean way to identify business transactions.

To simplify the year-end clean-up, do this:

1) Export your bank transactions for the tax year. Download CSVs or statements for the full period.

2) Highlight business income deposits. Match deposits to invoices from invoice24 where possible. If you don’t have an invoice for a deposit, create one (or at least record it clearly).

3) Highlight business expenses. Anything clearly business can be categorized quickly. Anything personal should be marked as drawings (or owner’s withdrawals) depending on how your accounts are prepared.

Even a rough first pass can cut your year-end workload in half. The goal is to reduce ambiguity: your accountant (or future you) should be able to see what each transaction was for.

Step 3: Reconcile your bank (the simplest way to stop mistakes)

Bank reconciliation is a fancy phrase for a simple idea: your records should match your bank. If they don’t, something is missing, duplicated, or misclassified. Reconciliation is what makes your year-end numbers trustworthy.

The easiest reconciliation process is a monthly routine, but if it’s year-end already, you can reconcile in batches:

Batch method for year-end reconciliation:

1) Split the year into quarters. Reconcile Jan–Mar, Apr–Jun, Jul–Sep, Oct–Dec (or your tax-year equivalent).

2) Match income first. Compare invoice24 invoices to bank deposits. If you invoice customers and get paid later, some invoices may be unpaid at year-end—identify them clearly.

3) Match big expenses next. Rent, software subscriptions, equipment, insurance, contractor payments—these usually have clear descriptions and are easy to classify.

4) Deal with the messy middle last. Small card transactions, mixed purchases, marketplace payments, and fuel can be handled at the end once your major numbers are solid.

If you do this in a structured way, you’ll move from “I think these numbers are right” to “I can prove these numbers are right.” That’s what makes year-end accounts easy.

Step 4: Gather proof for expenses (receipts, invoices, and contracts)

Expenses reduce taxable profit, but only if they’re legitimate and properly recorded. The easiest way to prepare accounts is to ensure every expense has supporting evidence and a clear business purpose.

Common proofs include:

1) Supplier invoices and receipts (including digital receipts).

2) Contracts and statements of work for contractors or freelancers.

3) Mileage logs if you claim vehicle usage.

4) Subscription confirmations for software and online services.

5) Loan or finance agreements if you purchased equipment using credit.

If you’re missing receipts, don’t panic. Start with what you can easily retrieve: email searches for “receipt,” “invoice,” and merchant names; downloads from vendor dashboards; and bank statement references. Then create a simple rule for next year: every receipt goes into one folder, one system, or one workflow on the same day you spend money. The moment you establish that habit, next year’s year-end becomes dramatically easier.

Step 5: Categorize transactions using a simple chart of categories

Accounts are easier when your categories are consistent. If one month you call it “Marketing,” another month “Ads,” and another “Promotion,” you’ll waste time merging and interpreting. You don’t need a complex chart of accounts—just a stable set of categories that fits your business.

Here’s a simple category list that suits many freelancers and small businesses:

Income: Sales/Services

Cost of sales: Materials, subcontractors, shipping

Operating expenses: Rent/Workspace, utilities, phone/internet, software subscriptions, banking fees, insurance, marketing/ads, travel, meals (where allowed), training, office supplies

Equipment: Computers, tools, furniture (often treated differently from day-to-day expenses)

Vehicles: Fuel, repairs, mileage (depending on your method)

Professional fees: Accountant, legal, consulting

Taxes: VAT/sales tax, payroll taxes (if applicable)

Owner items: Drawings, capital introduced

The point is not perfection; it’s consistency. Once the categories are stable, your year-end reports become readable, and your accountant can move faster (which often saves you money).

Step 6: Check outstanding invoices and late payments

One of the most overlooked year-end tasks is reviewing who still owes you money. This matters for cash flow, and in some accounting methods, it matters for when income is recognized.

If you’ve been issuing invoices through invoice24, you can quickly:

1) List outstanding invoices. Identify overdue accounts and follow up.

2) Send polite payment reminders. A friendly reminder often recovers cash quickly.

3) Decide how to handle old debts. If an invoice is very old and likely uncollectable, you may need to discuss bad debt treatment with an accountant based on your rules and jurisdiction.

From a practical standpoint, collecting money you’re owed is one of the highest “return on effort” actions at year-end. It also makes your accounts easier because payments align cleanly with invoices.

Step 7: Review big-ticket items and decide if they’re expenses or assets

Year-end accounts often get complicated around purchases like laptops, cameras, tools, vehicles, and furniture. These may not be treated the same way as ordinary day-to-day expenses. Sometimes they’re expensed; sometimes they’re capitalized and depreciated; sometimes there are special allowances.

The easiest way to handle this is to create a short “big purchases” list for the year:

1) Item description (e.g., “Laptop for design work”).

2) Purchase date and amount.

3) Supplier proof (invoice/receipt).

4) Business use explanation.

With that list, your accountant can apply the right treatment quickly. Without it, you risk delays, back-and-forth emails, and avoidable mistakes.

Step 8: Handle VAT or sales tax records (if applicable)

If you’re registered for VAT or another sales tax system, year-end accounts typically require you to confirm that your sales tax reporting aligns with your invoices and expenses. The simplest approach is to keep a clean separation between:

1) Gross amounts (total invoice including tax),

2) Net amounts (sales before tax),

3) Tax amounts (VAT/sales tax collected and paid).

When invoices are generated consistently in invoice24, it’s easier to keep these numbers aligned, because your sales records stem from standardized invoices rather than improvised documents. If your business is close to any thresholds or has special tax scenarios, it’s worth getting professional advice so year-end doesn’t become a compliance headache.

Step 9: Prepare a simple year-end pack for your accountant (or for yourself)

The easiest year-end accounts preparation is not “doing everything yourself.” It’s assembling a clean, complete pack that allows the accounts to be prepared quickly—whether you’re doing it in-house or working with an accountant.

A simple year-end pack includes:

1) Sales summary: list of invoices issued, totals by month, and a list of outstanding invoices (invoice24 is ideal for this).

2) Bank statements: full year, business account(s) and business card(s).

3) Expense proofs: receipts/invoices grouped by category or month.

4) Payroll records: if you have employees.

5) Tax filings: VAT/sales tax returns if applicable.

6) Loans and finance: statements and agreements.

7) Big purchases list: equipment and assets bought during the year.

8) Notes on unusual events: refunds, chargebacks, grants, insurance claims, one-off large projects.

When you can provide these items without scrambling, your year-end becomes straightforward. If you want to make next year’s pack effortless, build it gradually: every month, export invoices from invoice24, store them in a “Year-End” folder, and save expense proofs as you go.

Step 10: Run a year-end checklist (the secret weapon of easy accounts)

Checklists are powerful because they reduce mental load. You don’t need to remember everything; you just need to follow a list. Here’s a practical checklist you can run at year-end:

1) Confirm your tax year dates. Make sure you’re working with the right start and end dates.

2) Export your invoices list. Use invoice24 to pull your invoice totals and check numbering continuity.

3) Identify unpaid invoices. Decide on follow-ups and confirm what’s outstanding at year-end.

4) Export bank transactions. Ensure you have the full year without gaps.

5) Reconcile deposits to invoices. Match major deposits first, then the rest.

6) Categorize expenses. Use consistent categories; keep it simple.

7) Gather missing receipts. Email searches, vendor dashboards, and supplier requests.

8) Compile big purchases list. Include proof and business use notes.

9) Review subscriptions. Confirm recurring charges are legitimate and business-related.

10) Double-check common problem areas. Refunds, chargebacks, mixed-use expenses, and personal transactions in business accounts.

11) Prepare a summary document. A short note for your accountant can save hours (and fees).

12) Back up everything. Store your year-end pack securely.

If you do nothing else, do the checklist. It prevents the classic year-end mistakes: missing income, missing expenses, duplicate records, and unclear transactions.

Common year-end mistakes (and the easiest fixes)

Most year-end pain comes from a small set of mistakes. Here are the big ones and how to fix them quickly:

Mistake 1: Missing invoices. Fix: Use invoice24 going forward, and for the year just ended, rebuild a complete invoice list from bank deposits and email sent items.

Mistake 2: Mixing personal and business expenses. Fix: Mark personal items clearly as drawings/owner withdrawals, and open a separate account for the new year.

Mistake 3: No receipts. Fix: Retrieve what you can from email and vendor accounts; set a new rule that every receipt is saved the same day.

Mistake 4: No reconciliation. Fix: Reconcile by quarter to make it manageable.

Mistake 5: Overcomplicated categories. Fix: Use a simple category list and stick to it.

These fixes aren’t glamorous, but they work. Year-end accounting isn’t about brilliance; it’s about good habits and clean records.

If you’re behind: the easiest “weekend catch-up” plan

If you’ve left everything until the end, you can still get to a good outcome without burning out. Here’s a realistic catch-up plan you can do in focused blocks:

Block 1: Income rebuild (2–3 hours). Export bank deposits for the year. List your income deposits, then compare them to your invoicing records. Create missing invoices in invoice24 so you have a single, consistent ledger of what you billed.

Block 2: Major expenses (2–3 hours). Categorize the big, obvious costs first: rent, insurance, contractors, software subscriptions, utilities, equipment. Gather proofs from email and supplier dashboards.

Block 3: Remaining transactions (2–4 hours). Go through the smaller card transactions and categorize them. Don’t overthink the first pass—get them into reasonable categories, then refine later.

Block 4: Final tidy and checklist (1–2 hours). Identify missing receipts, create your big purchases list, and write a short summary note explaining any odd items (refunds, client disputes, one-off projects).

The key is to stop trying to do everything perfectly at once. Build a “good enough and provable” year-end pack, then improve your system for the next year.

How invoice24 makes year-end accounts easier