The new UK tax year begins on 6 April, and for many small business owners it can feel like just another date in the calendar. But it’s actually the perfect opportunity to reset, review your bookkeeping, and make sure your systems are working for you—not against you.
If last year felt a little chaotic with receipts, invoices, and VAT returns, don’t worry—you’re not alone. Many business owners get so busy running their business that bookkeeping becomes something they deal with later.
Starting the tax year with clean, organised records can make a huge difference. It helps you stay compliant, understand your numbers, and avoid the last-minute panic when your accountant asks for information.
Here are six key bookkeeping checks every UK small business owner should review at the start of the new tax year.
1. Reconcile Your Bank Accounts
One of the most important habits for accurate bookkeeping is regular bank reconciliation.
In simple terms, this means making sure the transactions in your accounting software match what’s actually happened in your bank account.
Start the new tax year by checking:
- All bank accounts are connected to your accounting software
- Bank feeds are importing transactions correctly
- Outstanding transactions are reconciled
- Duplicate entries have been removed
When this is done regularly, you’ll always know exactly what money is coming in and going out of your business.
If you’re using cloud software like Xero, this process becomes much quicker and easier because your bank feeds update automatically.
2. Review Who Owes You Money (Debtors)
Cash flow is the lifeblood of any small business.
At the start of the tax year, take time to review your unpaid invoices. In bookkeeping terms, these customers are called debtors – people who haven’t paid you yet.
Ask yourself:
- Are there overdue invoices that need chasing?
- Do payment terms need tightening?
- Are you sending invoices promptly?
Even small delays in payments can impact your ability to pay suppliers, staff, or tax bills.
A simple monthly review of unpaid invoices can significantly improve your cash flow.
3. Check What Your Business Owes
Just as important as knowing who owes you money is understanding what your business owes to others.
These are known as creditors – suppliers or businesses you need to pay.
Review:
- Outstanding supplier bills
- VAT owed to HMRC
- Loan repayments
- Regular expenses and subscriptions
Having a clear view of upcoming payments helps you avoid surprises and plan your cash flow for the months ahead.
4. Review Your Chart of Accounts
Your Chart of Accounts is the structure that organises all the money coming in and going out of your business.
Think of it like a filing cabinet for your bookkeeping, where every transaction is placed into the correct category.
Over time, businesses often accumulate unnecessary or duplicated categories.
The new tax year is a great time to check that your categories still make sense.
For example:
- Income streams are clearly separated
- Expenses are grouped correctly
- Software subscriptions and overheads are easy to track
A clean chart of accounts makes your reports far easier to understand.
5. Review Your Software and Automations
Many businesses start using accounting software but don’t fully use the features available to them.
The start of the tax year is a good time to review:
- Are you capturing receipts digitally?
- Are bank feeds working correctly?
- Are invoices sent directly from your accounting software?
- Are there apps that could automate repetitive tasks?
Cloud accounting tools like Xero allow you to connect bank accounts, track invoices, and see your business performance in real time.
The goal is simple: less manual admin and more time focusing on running your business.
6. Schedule a Xero Health Check
Even if you’ve been using Xero for a while, it’s easy for small errors to creep in over time.
Incorrect tax codes, duplicated accounts, or miscategorised expenses can create bigger issues later—especially around VAT returns or year-end reporting.
A Xero health check reviews your system to ensure:
- Transactions are categorised correctly
- VAT settings are accurate
- Your chart of accounts is structured properly
- Reports reflect the true position of your business
Catching these issues early can save hours of corrections later.
Why Starting the Tax Year Organised Matters
When your bookkeeping is up to date and structured correctly, it becomes much more than a compliance task.
It gives you:
- Clarity on how your business is performing
- Confidence in your numbers
- Better decision-making throughout the year
Many business owners only look at their accounts once a year. But when your bookkeeping is clear and accurate, you can see exactly what’s happening in your business at any time.
How RixGreen Can Help
At RixGreen Limited, we help UK small business owners gain confidence and clarity in their bookkeeping systems.
Our support includes:
- Xero Training – helping you understand how to use your accounting software properly
- Bookkeeping Support – keeping your records accurate and up to date
- Xero Health Checks – identifying issues before they become bigger problems
Our approach is always practical, supportive, and jargon-free, so you feel confident managing your business numbers.
Start the New Tax Year with Confidence
The start of a new tax year is the perfect time to review your bookkeeping and make sure everything is running smoothly.
Taking a few hours now to check your systems could save you days of stress later in the year.
If you’d like support reviewing your bookkeeping setup or getting the most from Xero, we’re always happy to help.
Get in touch with RixGreen today to book Xero support, a health check, or bookkeeping assistance.
Photo by BoliviaInteligente on Unsplash