Take control of end of fiscal year with Xero

Every year, you prepare end-of-year accounts and financial reports to file taxes with the IRS. But it’s also a great chance to do a retro on the year that was, tweak your strategy, and optimize your business.

A screen shows a list of people to be paid as part of the end of financial year tidy-up.

Prepare for your fiscal year end

A fiscal year for a business can be any 12-month period that ends on the last day of a month. For example, 1 July to 30 June is a fiscal year. The tax year is a common example of a fiscal year. Businesses close their books at the end of the tax year and submit reports to the IRS.

Ryan Simmons and Ed Hemming of artisanal bakery Volare prepare bread dough knowing their books are in order for EOFY

Keep accurate records throughout the year

Use accounting software to capture transactions straight from your bank account, with no data double-handling.

Get clear on the expense you can claim

Seek advice if you’re not sure. Missing a deduction will cost you money.

Produce end of financial year statements

These include income statement, balance sheet, cash flow statement and statement of owner’s equity.

Put your strategy hat on

End of year reports summarize business performance, giving you an opportunity to refine your strategy.

Xero can help with your end of fiscal year

Make your end of fiscal year the start of something good. Use Xero to pull the numbers together, streamline your reporting, and put your finger on the pulse. With automated data capture your accounts will be in great shape for tax reporting, and you’ll see your business in a whole new light.

  • Included
    Automated data capture and bank reconciliation
  • Included
    Push-button reporting
  • Included
    Online collaboration with advisors
  • Included
    Integrated inventory records
Learn how Xero can help your business
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Find an accountant or bookkeeper

Nothing beats advice from an expert. Accountants, bookkeepers and tax professionals can get you from the end of one fiscal year to the start of the next – dealing with all the tricky stuff in between, such as:

  • Included
    closing your accounts for the year
  • Included
    calculating and claiming depreciation expenses
  • Included
    reconciling and writing off bad debts
  • Included
    finalizing financial statements
  • Included
    tax planning for the new year
Find someone near you in our advisor directory
A business owner works happily online with her accountant on preparing her accounts for end of fiscal year, United States.

Fiscal year-end for accountants and bookkeepers

It pays to be organized for end of fiscal year. Going paperless will save you and your clients from drowning in receipts and other admin. Using cloud accounting tools will speed up tasks like cash coding and bank reconciliation.

  • Included
    No switching between software and tools
  • Included
    Work collaboratively with multiple people logged in at the same time
  • Included
    Use find-and-recode to fix client bookkeeping errors
Learn how to work smarter, not harder this tax season
Prepare your clients for closing month of accounting year with Xero’s resources for accountants and bookkeepers.

End of fiscal year jargon buster

Complicated jargon doesn’t help the stress of fiscal year end. Here are a few explanations to get you started.

Accounting period

An accounting period is any timeframe that’s used for reporting on your finances. They can be monthly, quarterly or yearly.

Accounting period full definition

Income tax

You pay income tax on your earnings, as an individual and a business. For a business, earnings are your profit.

Income tax full definition

Tax deduction

A tax deduction is a business expense that can potentially lower the amount of tax you need to pay.

Tax deduction full definition

Financial statements

Financial statements include your income statement, balance sheet, cash flow statement, and statement of owner’s equity.

Financial statement full definition

Depreciation

Depreciation is how businesses calculate the cost of wear and tear of physical assets, like machinery.

Depreciation full definition

Expense

An expense is payment made by a business. They are deducted from revenue to calculate profit.

Expense full definition

Gross and net profit

Your income statement will show gross profit and net profit (always smaller than gross).

Learn how they differ
See our accounting glossary for more jargon-busting
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More about end of fiscal year and Xero

US businesses can often set their own tax year, which means there’s not a single day where everyone files. However, businesses are typically required to file on the 15th day of the fourth month after their fiscal year ends. So if your business year was the calendar year, you’d close your books on 31 December and file on the 15th of April. That means businesses have 3.5 months to prepare their tax return.

Learn when to file from the IRS

US businesses can often set their own tax year, which means there’s not a single day where everyone files. However, businesses are typically required to file on the 15th day of the fourth month after their fiscal year ends. So if your business year was the calendar year, you’d close your books on 31 December and file on the 15th of April. That means businesses have 3.5 months to prepare their tax return.

Learn when to file from the IRS

Your income tax return needs to show the federal government how much profit your business earned in the accounting year, plus any business expenses you can claim as deductions such as business office supplies and promotional materials.

Your income tax return needs to show the federal government how much profit your business earned in the accounting year, plus any business expenses you can claim as deductions such as business office supplies and promotional materials.

Yes. you need to retain copies of your financial transactions, including receipts and invoices. These may be required in the case of an audit. You’re expected to keep records for at least three years but sometimes longer, so check with IRS. That’s another reason why digital records are handy. The documents are perfectly preserved and take up no space.

See how using Hubdoc can make this simple

Yes. you need to retain copies of your financial transactions, including receipts and invoices. These may be required in the case of an audit. You’re expected to keep records for at least three years but sometimes longer, so check with IRS. That’s another reason why digital records are handy. The documents are perfectly preserved and take up no space.

See how using Hubdoc can make this simple

Good news. You don’t need to do a formal year end close or roll-up journal in Xero. But it’s important to follow a simple process to check the accounts are up-to-date before the end of the fiscal year.

See how to do a year end in Xero

Good news. You don’t need to do a formal year end close or roll-up journal in Xero. But it’s important to follow a simple process to check the accounts are up-to-date before the end of the fiscal year.

See how to do a year end in Xero

Xero's 1099 report contains forms for 1099-NEC and 1099-MISC. The 1099-NEC form is for reporting payments you’ve made to non-employees such as freelancers and contractors. The 1099-MISC form is for reporting miscellaneous income such as rent or royalties.

Learn more about 1099 in Xero

Xero's 1099 report contains forms for 1099-NEC and 1099-MISC. The 1099-NEC form is for reporting payments you’ve made to non-employees such as freelancers and contractors. The 1099-MISC form is for reporting miscellaneous income such as rent or royalties.

Learn more about 1099 in Xero

Prepare for EOFY with Xero

Xero has all the features you need to manage the end of the fiscal year effortlessly.

Simple bank reconciliation

Keep track of your cash flow with daily bank reconciliation. Save time and stay current on your business.

Learn more about bank reconciliation

Up-to-date accounting reports

Track your finances with accurate accounting reports and collaborate with your advisor online in real time.

Learn more about reporting

Instant data capture

Automate tasks like entering bills and receipts. Take a photo of receipts or scan bills into Xero via Hubdoc.

Learn more about capturing data

Use Xero to get EOFY sorted

Access all Xero features free for 30 days to help you conquer tax time.

Plans to suit your business

All pricing plans cover the accounting essentials, with room to grow.

Early

Usually $20

Now $1

USD per month

Save $57 over 3 months

Growing

Usually $47

Now $2.35

USD per month

Save $133.95 over 3 months

Established

Usually $80

Now $4

USD per month

Save $228 over 3 months

Xero reserves the right to change pricing at any time.

This offer is only available to organizations new to Xero that are based in the US. Offer available until 11:59pm PST on 20 December 2024 using code TAKE9543DEC at checkout. Discount applies to base Early, Growing, Established plan subscriptions only. Offer cannot be used in conjunction with any other plan offer and cannot be exchanged for any other Xero offer. At the end of the offer period, the plan will be charged at Xero’s standard rates.

Hubdoc is included in Xero Early, Growing and Established plans as long as it’s connected to your Xero subscription. Your use of the Xero services is subject to the Xero Terms of Use and your use of the Hubdoc services is subject to the Hubdoc Terms of Use.

†Invoice limits for the Early plan apply to both approving and sending invoices. Transactions initiated by app partners may automatically contribute to your invoice limit.

See our terms of use for details

Hubdoc terms of use

Pricing & fees for Stripe accounts

Xero reserves the right to change pricing at any time.

This offer is only available to organizations new to Xero that are based in the US. Offer available until 11:59pm PST on 20 December 2024 using code TAKE9543DEC at checkout. Discount applies to base Early, Growing, Established plan subscriptions only. Offer cannot be used in conjunction with any other plan offer and cannot be exchanged for any other Xero offer. At the end of the offer period, the plan will be charged at Xero’s standard rates.

Hubdoc is included in Xero Early, Growing and Established plans as long as it’s connected to your Xero subscription. Your use of the Xero services is subject to the Xero Terms of Use and your use of the Hubdoc services is subject to the Hubdoc Terms of Use.

†Invoice limits for the Early plan apply to both approving and sending invoices. Transactions initiated by app partners may automatically contribute to your invoice limit.

See our terms of use for details

Hubdoc terms of use

Pricing & fees for Stripe accounts