Startup Accounting Checklist: What UK Founders Need Each Month and Year

A UK startup needs more than a year-end set of accounts. The useful foundation is a simple monthly process: keep the records current, close the month, check cash and liabilities, and give founders a clear view of what happened.

This checklist explains what normally needs to happen each month, quarter and year. The exact requirements depend on the company, so treat it as a practical starting point rather than a substitute for advice on your circumstances.

What should a startup do every month?

Each month, the finance records should be brought up to date and checked. That usually includes:

• recording sales, supplier bills and expenses;

• reconciling bank accounts, payment platforms and company cards;

• running payroll and recording payroll taxes and pensions;

• checking money owed by customers and money owed to suppliers;

• reviewing VAT, Corporation Tax and other amounts building up;

• closing the month and producing a simple profit, cash and balance-sheet view.

Reliable accounting records give founders a dependable starting point. Our startup accounting service covers bookkeeping, VAT, payroll, annual accounts, tax and the confirmation statement for one monthly fixed fee agreed to suit your stage. Request a quote using your revenue and employee numbers.

When should founders add management reporting?

Add structured reporting when founders, the board or investors need a regular view of performance, budget versus actual and future cash. This is a separate package built on the accounting records.

Our reporting and planning package runs monthly or quarterly. It brings together management accounts, board or investor reporting, budgeting, variance analysis and cash-flow forecasting, with detail suited to the company’s stage.

What work happens quarterly?

Quarterly work depends on the business. A VAT-registered company will normally prepare and submit VAT returns on its filing cycle. The team should also review the forecast, tax position, aged debtors and whether the current accounting process still fits the number of transactions, employees and entities.

This is also a good point to check the cap table, option records, grant income and any unusual contracts. These items often affect year-end accounts, tax work or specialist filings later.

What needs to happen each year?

A UK limited company normally needs statutory annual accounts and a Company Tax Return. Companies House and HMRC deadlines are different. For an established company, annual accounts are usually due nine months after the financial year end, Corporation Tax is generally due nine months and one day after the accounting period, and the Company Tax Return is due twelve months after the period.

Founders should also consider the confirmation statement, payroll year end, pension duties, VAT annual adjustments where relevant, and any Employment Related Securities return for employee share activity.

See the official GOV.UK accounts and Company Tax deadlines for the current rules.

What changes when the startup begins to grow?

The finance process should scale with the company. More employees may mean stronger payroll and approval controls. More customers may require better invoicing and debt collection. A funding round can bring more detailed reporting and investor information. International activity can introduce VAT, payroll or tax questions in more than one country.

The accounting layer remains the foundation. Reporting and planning adds a consistent monthly or quarterly cycle for management accounts, budgets, variance analysis, cash forecasts and board or investor reporting.

Common accounting mistakes in early-stage startups

• Waiting until year end to organise the records.

• Using the bank balance as the only measure of financial health.

• Mixing founder, employee and company spending without clear evidence.

• Forgetting taxes and committed costs when estimating runway.

• Keeping a forecast that is not reconciled to actual results.

Frequently asked questions

Does a pre-revenue startup still need monthly accounting?

Yes. The process can be light, but investors, grant providers and directors still need reliable records, cash visibility and timely filings.

Can we change accountants later?

Yes. A structured handover should identify missing records, open filings and any catch-up work before the new monthly process begins.

Do we need a fractional CFO for regular reporting?

Regular reporting and forecasting can be handled through a structured monthly or quarterly package. A flexible fractional CFO role is a separate option for more complex leadership needs, subject to scope and availability.

Important: This article is general information, not accounting, legal or tax advice. Deadlines and requirements depend on the company and can change.