Year-End Accounting Checklist for Small Businesses in India

A practical year-end accounting checklist for Indian small businesses — GST reconciliation, stock valuation, P&L, and prep for the new financial year.

1. Reconcile all bank accounts

Match every transaction in your books to the bank statement. Discrepancies = errors or unrecorded entries.

2. Reconcile GSTR-2B with purchases

For each vendor bill in your books, confirm it appears in GSTR-2B. Missing entries delay ITC.

3. Physical stock count

Year-end stock count is required for accurate COGS. Variance from book stock highlights pilferage, damages or mis-billing.

4. Write off bad debts

Identify receivables >180 days with no recovery prospects. Write them off — improves accuracy and saves tax.

5. Update fixed asset register

Add new purchases, retire scrapped assets. Run depreciation per the Companies Act / Income Tax Act.

6. Generate P&L and balance sheet

Final reports for the year. Share with your CA for tax filing.

7. Reset numbering series

On 1 April, start invoice/CN/DN series fresh. Many billing apps do this automatically.

8. Pay bonuses and dues

Clear staff bonuses and TDS. Settle outstanding vendor bills wherever possible.

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