Skip to main content


With the start of a new calendar year, your business’ accounting year may have come to an end as well. The date you choose for an accounting year end is completely up to you as a business owner. However, your accountant may well have influenced your decision as this choice can have ripple effects throughout your business. So what does it all mean?

Tax Payments

If your company is incorporated, a financial year end date will determine when payment of tax falls due.

For an unincorporated business, profits for the year are decided according to the financial year end.

Finalising Year End Accounts

The work involved with finalising your business’ financial year end can be time consuming. Depending on how you choose to run your accounts throughout the year, you, or your accountant, may have many transactions to catch up on and enter.

Whether this is the case or not, your accounts will definitely take up more of your time than usual around your financial year end. Are your year end accounts coinciding with a busy period for you and your business? Are they potentially having a negative impact on your day to day business by taking you away from serving customers or other tasks?

These are important questions to consider when deciding upon your financial year end. What’s more, when your accounts are produced, you should take the time to go through the final figures and see how your business performed.

What’s your cash flow position? Why were your expenses higher over a certain period this year? The answers to these questions will give you an in depth look at how your business is performing and help you to make better business decisions going forward.

Seasonal Business

Businesses who do most of their trade at certain times of the year should consider their accounting year end date carefully. Specifically, payment date for their tax liability should fall when the cash flow is present within the business to pay it.

A simple way to do this, if feasible, is to open a bank account solely for tax. When the time of year comes when you are doing most of your trade, money can be set aside into this account. When your tax liability falls due, you can be confident that you have the money within your business to pay your obligation.

Changing Your Accounting Year

If circumstances in your business change, the factors above may influence you to change your accounting year. It may be disruptive during the financial year that you make the change and your accountant will probably be busier because of it. However, the benefits long term can make changing a sensible option.

Big Red Cloud

Here at Big Red Cloud we provide simple online accounting software for small businesses and their accountants and bookkeepers. Our cloud accounting software makes preparing your accounts easy with unlimited transactions and invoicing as well as being backed up by full telephone, email and live chat support.

A new financial year is the perfect time to start using Big Red Cloud and make your life easier. Why not take a Free Trial

Marc O'Dwyer

After completing a Graduate program in Marketing, Marc’s impressive sales career began at Allied Irish Banks, Pitney Bowes and Panasonic where he received numerous Irish and European sales performance awards and consistently exceeded targets and expectations. In 1992, Marc’s entrepreneurial spirit led him to set up his own business, Irish International Sales (IIS). Initially, this company was a reseller for Take 5 Accounts and Payroll software. Within four years, IIS became the largest reseller of Take 5 in Ireland, acquiring four other Take 5 resellers. He also found time to set up two mobile phone shops under the Cellular World brand and a web design company offering website design services for small businesses. In 2001, he bought the majority share in a small Irish software business, Big Red Book. At that time, the company was losing money. The company became profitable within two months, and Marc then acquired a payroll company to compliment Big Red Books Accounting products. In 2003, IIS were appointed as Channel Partners with SAP for their new SME product, SAP Business One. Marc sold his Take 5 business and concentrated on developing this new market for SAP As a result, by 2007, IIS was recognised as the largest Channel Partner for SAP in EMEA (Europe Middle East and Africa). In 2008, the IIS Sales Manager bought the Company from Marc in an MBO. He launched Big red cloud in June 2012, the online version of big red book, to date the company successfully converts 59% of trials into sales and the number of customers is growing rapidly. Marc continues to run both Big Red Book and Big Red Cloud which now support 75,000 businesses. He is a very keen sportsman, having played rugby for 20 years, represented Leinster at under 16 and under 20 levels, and league squash with Fitzwilliam Lawn Tennis Club for 10 years. Marc has competed in 11 Marathons, including the London and Boston Marathons, and has completed several Triathlons and Half Ironman races. He has also completed six Ironman Races in Austria(x2), Frankfurt (Germany), Nice (France) , Mallorca (Spain) and Copenhagen (Denmark)

This site is registered on as a development site. Switch to a production site key to remove this banner.