The end of the financial year is more than just closing the books — it’s an opportunity to reflect, correct, and prepare your business for a stronger year ahead. For Indian companies, the financial year ends on March 31, but the real work of year-end accounting often stretches into the months that follow. With statutory deadlines like September 30 for audits and October 31st for Tax returns, the pressure can build quickly if businesses aren’t prepared.
At OpsMaven, we support businesses through shared finance and accounting services that make this process smoother and more efficient. Below are five detailed ways you can prepare your business for year-end accounting — specifically for Indian operations.
1. Reconcile Accounts Early
Waiting until the last week before audit filings is risky. Instead, businesses should aim to complete reconciliations of all accounts within three months from closure (by June 30). This includes:
- Bank reconciliations for current accounts, overdrafts, and fixed deposits
- Credit card reconciliations (especially for travel/expense-heavy businesses)
- Petty cash verification and cash counts
- Inter-company reconciliations, which are critical if you operate across India and overseas subsidiaries
By addressing mismatches between books and statements early, you minimize last-minute adjustments, auditor queries, and compliance risks.
2. Review Receivables and Payables
- Accounts Receivable (AR): Identify old invoices (90+ days), follow up on collections, and send reminders. Consider provisions for doubtful debts if recovery seems unlikely.
- Accounts Payable (AP): Clear pending vendor bills, negotiate settlements, and ensure all credit notes are recorded.
This process not only helps present a true financial position but also ensures that your cash flow is healthy enough to cover statutory payments like GST, PF, and advance taxes. A well-maintained AR/AP ledger also reduces audit queries and demonstrates strong internal controls.
3. Organize Expense Records
Documentation is a common pain point during audits in India. Missing invoices or incomplete backup can lead to disallowed expenses and tax adjustments. To avoid this:
- Ensure vendor invoices are GST-compliant and contain valid GSTIN numbers
- Maintain employee reimbursement proofs such as travel bills, mobile bills, and medical claims
- Digitize all documents into a structured format, linked to vouchers in your accounting system
- Categorize expenses correctly (e.g., marketing, professional fees, utilities) for easier review
Having your expenses well-documented means auditors can close reviews faster, and your finance team avoids the last-minute scramble.
4. Assess Provisions, Accruals & Prepaid Expenses
Indian accounting standards (Ind AS) and Companies Act requirements mandate recognition of liabilities incurred, even if not paid by March 31. Examples include:
- Accrued salaries, gratuity, and leave encashment
- Statutory liabilities such as TDS, PF, ESI, and professional tax
- Bonuses and performance incentives declared but unpaid
- Vendor bills for services rendered but not yet invoiced (e.g., legal fees, audit fees)
Accurate provisioning ensures that your Profit & Loss statement is not overstated and that your financial statements reflect reality.
5. Plan for Taxes and Compliance
Tax planning is not a year-end activity — but year-end is when lapses are most visible. Businesses should:
- Reconcile GST returns (GSTR-2B vs. books) to ensure input tax credit is accurate
- Cross-check TDS deducted vs. filed (Form 26Q/24Q) to avoid mismatches in Form 16/26AS
- Estimate advance tax liability (by June 15, Sept 15, Dec 15, and Mar 15 installments) to avoid interest under sections 234B/234C
- Prepare Tax Audit (Form 3CD) and ROC filings well in advance of the September 30 deadline
Early planning avoids penalties, interest, and last-minute compliance stress.
Final Thoughts
Year-end accounting doesn’t have to be stressful. With the right planning and processes, businesses can not only meet deadlines but also gain insights to shape strategy for the next year.
At OpsMaven, we partner with companies to provide reliable, end-to-end finance and accounting services — from bookkeeping and reconciliations to compliance and CFO advisory. With our shared services model, you can reduce the burden on your internal teams, ensure compliance with Indian statutory requirements, and focus on what matters most: scaling your business.
