Year-end close: checklist for South African companies

Whether your year-end is 28 February, 31 March, or another date, the goal is reconciled control accounts, accurate revenue and expenses, and supporting schedules that tie to your AFS and tax filings.

If your year-end has just passed, you are already in the next financial year — use April–May to close the prior year properly while provisional tax and VAT cycles continue.

Essential Year-End Checklist

• Reconcile all bank accounts and ensure the closing balance matches your bank statement
• Review and reconcile your debtors (accounts receivable) ledger — chase outstanding invoices
• Review and reconcile your creditors (accounts payable) ledger — confirm outstanding amounts
• Perform a physical stock count if you carry inventory, and reconcile to your system
• Ensure all revenue and expenses have been captured for the year
• Review fixed asset register — add new assets purchased and remove disposed assets
• Capture all depreciation / wear-and-tear entries
• Accrue for outstanding expenses not yet invoiced (accruals)
• Reverse any prepayments that relate to the new financial year
• Ensure all employee-related payroll obligations are up to date (UIF, SDL, PAYE)
• Confirm your VAT account is cleared (should be nil or reconcile to outstanding VAT liability)
• Prepare or update your loan schedule if your business has any loans

CIPC Annual Returns

Every company registered with the Companies and Intellectual Property Commission (CIPC) must file annual returns within 30 business days of the anniversary of its incorporation date. Failure to file results in an escalating penalty and, ultimately, deregistration of your company. CIPC annual returns are separate from SARS tax returns and must be filed on the CIPC website with payment of the applicable annual return fee.

The fee is based on your company's annual turnover and ranges from R100 for companies with turnover below R1,000,000 to R3,000 for companies with turnover exceeding R25,000,000. Keep track of your CIPC anniversary date and set a reminder to file timeously.

Planning for the New Financial Year

Year-end is not just about closing the books — it is the ideal time to review your business's financial performance, set budgets for the year ahead, and identify opportunities for tax planning. Review your management accounts against your budget, identify the key drivers of profitability and cost, and set realistic targets for the new year.

If your business has grown significantly during the year, it may be time to review your business structure, your VAT status, or your accounting software to ensure they are still fit for purpose. A brief review meeting with your accountant at year-end is one of the best investments you can make in your financial management.