How Accounting Software Helps with Final Accounts Preparation

Team Nomi

Apr 16, 2025
5 minutes read

As the financial year ends on April 5, it’s time to prepare your final accounts. This process can be challenging, but accounting software makes it easier. 

By automating tasks, integrating real-time data, and ensuring compliance, accounting software smooths final accounts preparation, saving time and effort. 

In this article, we’ll explore how accounting software can simplify this process, ensuring accuracy and productivity.

What Are Final Accounts?

Final accounts, also called statutory accounts or year-end accounts, are financial reports that show a company’s performance and position at the end of its financial year. They’re called “final” because they summarise all financial activity for the year and are used for tax and legal reporting.

Final accounts generally include three main components:

• Balance Sheet – It shows what the business owns and owes
• Profit and Loss Account – It shows income, expenses, and profit or loss
• Notes to the Accounts – It explains details behind the numbers

Final accounts preparation is the process of creating important financial reports that show how a business is performing. These reports include the Profit and Loss Statement, which shows income and expenses.

Final accounts preparation must follow specific rules and standards, such as FRS 102 or FRS 105, to ensure accuracy and compliance with UK regulations.

Challenges of Preparing Final Accounts Without Software

Preparing final accounts without software can be challenging. Here are some common issues businesses face:

1. Manually calculating totals, depreciation, and adjustments takes a lot of time.
2. It’s easy to make mistakes in calculations, leading to inaccurate reports.
3. Entering the same data in multiple places can lead to inconsistencies.
4. Keeping up with regulations and ensuring reports meet HMRC and Companies House standards can be difficult.
5. Manually creating reports with the right layout and structure can be tedious and error-prone.
6. Without software, it’s harder to get updated financial information, which can affect decision-making.

Accounting software overcomes challenges by automating calculations, integrating real-time data, ensuring compliance, and reducing errors in final account preparation.

How Accounting Software Streamlines the Final Accounts Preparation

Accounting software makes final accounts preparation faster, easier, and more accurate. It removes the need for manual work and reduces the chances of making mistakes. Let’s look at how it helps at each step of the process:

Automation of Calculations

One of the biggest advantages of accounting software is its ability to do automatic calculations. Here’s how it helps:

• Automatic totals: The software calculates totals for income, expenses, and adjustments without you needing to add them up.
• Tax calculations: It automatically works out taxes, saving you time and ensuring accuracy.
• Depreciation and adjustments: The software handles depreciation calculations and other necessary adjustments, so you don’t have to worry about complex formulas.

Real-Time Data Integration

With accounting software, your data is always connected and up to date. Here’s how real-time data integration improves the process:

• Automatic data import: The software pulls in information directly from invoices, receipts, and bank feeds, so you don’t need to enter the same data multiple times.
  
• Eliminates duplication: Real-time data integration ensures no duplication, as the system updates instantly whenever new data is added.
• Consistent, up-to-date reports: Your financial statements always reflect the most current numbers, so you’re working with accurate, real-time data.

Integration with HMRC

Accounting software often comes with built-in HMRC integration, making it easier to stay compliant. It can directly connect to HMRC systems for tax filings, such as VAT returns, Corporation Tax, and income tax reports.

• Direct filing with HMRC for tax returns and other submissions.
• Automatic tax calculations based on current rates.
• Compliance-ready reports, reducing the chance of penalties.

Data Storage

With accounting software, all your financial data is securely stored in one place. You no longer have to worry about losing documents or data. The software keeps a history of all financial records, making it easier to track progress and reference past information when needed.

• Centralised data storage for easy access to financial records.
• Secure backup to prevent data loss.
• Audit trails to track changes and updates made to the accounts.

Cloud-Based Solution

Most accounting software offers cloud-based solutions, meaning your data is stored online and accessible from anywhere with an internet connection. This flexibility is essential for businesses that need to work remotely or access their accounts while on the go.

• Access from anywhere, making remote work easier.
• Automatic updates to keep the software up to date with the latest features and security patches.
• Collaboration is made easy with multiple users able to work on the same data simultaneously.

Accounting software converts the final accounts preparation process, making it more efficient, accurate, and compliant, all while saving you time and effort.

Additional Benefits for Accountants and Businesses

Using accounting software doesn’t just save time. It also helps your team work better.

• Reports are ready faster, often in just minutes.
• Multiple users can work together at the same time.
• Reduces human error for more accurate results.
• Clean, clear reports help build client trust.
• Scales easily for both small and growing businesses.

Tips for a Smooth Transition to Software

Ready to switch to accounting software? Follow these simple steps:

• Train your staff before switching.
• Start with one set of accounts to test.
• Choose software that fits your business size.
• Look for user-friendly features.
• Make time for setup and onboarding.
• Check if it integrates with your current tools.
• Ask for support or tutorials from the provider.

Taking the time to set it up right will make final account preparation easier in the long run.

If you’re doing final accounts preparation, Nomi is the best tool for fast, accurate, and compliant results. Designed for accountants and bookkeepers, Nomi offers smart automation, real-time data, and seamless filing with HMRC and Companies House. Try it with a 30-day free trial or book a demo to see how it simplifies the process.