Financial Year End is the specific date marking the end of a company's 12-month accounting period. It determines the deadlines for preparing statutory financial statements, filing tax returns, and submitting annual records to the company registry, serving as the formal finish line for a business's yearly financial reporting.
Financial Year End is the specific date that marks the conclusion of a company's 12-month accounting period. On this date, you "close the books," allowing your accountant to prepare your statutory financial statements, which report your company's performance and financial position for the preceding year. This date is critical because it dictates your deadlines for tax filings and company registry submissions.
Every Irish company must have a Financial Year End, also known as an accounting reference date. Whilst the default date is often the anniversary of the company's incorporation, many businesses choose a different date to align with their natural business cycle or the calendar year. This choice influences when you will experience your busiest administrative periods and when your corporation tax becomes due.
For founders, understanding your Financial Year End is essential for cash flow planning and compliance. It is not just an arbitrary date on the calendar; it is the finish line for your financial reporting. Once this date passes, you have a set window to prepare your income statement and balance sheet and submit them to the Companies Registration Office and Revenue.
When you first incorporate your company, your initial Financial Year End is automatically assigned by the company registry, typically falling on the last day of the month one year after incorporation. However, your first accounting period can be slightly shorter or longer than 12 months (up to a maximum of 18 months) to help you transition to a preferred permanent date.
Most companies in Ireland opt for a Financial Year End of 31 December to match the calendar year, but others choose dates that suit their specific industry. For example, a retail business might choose a January date to ensure the busy Christmas period is fully captured within a single set of accounts before the post-holiday lull begins.
Yes, you can change your Financial Year End by notifying the Companies Registration Office. This is often done to align a subsidiary's year-end with its parent company or to move the reporting deadline to a less busy time of year. There are strict rules on how often you can change it—typically once every five years—unless you are aligning with another group company.
Changing your year-end will either shorten or lengthen your current accounting period. If you lengthen it, remember that an accounting period cannot exceed 18 months. You must file the notification before your current deadline expires; you cannot retrospectively change a year-end that has already passed to avoid a late filing penalty.
Once the Financial Year End passes, your "reporting window" begins. You must collect all your receipts, invoices, and bank statements so your accountant can finalise your accounts. In Ireland, you typically have nine months from your year-end to file your annual return and financial statements with the company registry.
This period is also when you calculate your corporation tax liability. For most small companies, the tax must be paid within nine months and 21 days of the year-end. Failing to meet these deadlines can lead to late filing fees, interest on unpaid tax, and potentially the loss of your audit exemption.
Not necessarily. In Ireland, the Annual Return Date (ARD) and the Financial Year End are two different compliance markers. Your Year End is for your accounts, whilst your ARD is the deadline for filing your annual return form. However, for efficiency, many companies choose to align these dates so that they only have one major compliance "burst" each year.
If they are not aligned, you might find yourself filing paperwork twice a year. If you are using an abridged financial statement, these must be attached to the annual return, so keeping the dates close together or aligned is standard practice for most Irish startups and micro companies.
Choosing a strategic Financial Year End can help with business management. If your business is seasonal, placing the year-end after your peak season allows you to show your strongest possible cash flow statement and balance sheet to potential investors or lenders. It also ensures you have enough cash on hand to pay the resulting tax bill.
For businesses seeking equity financing, having a clear and up-to-date set of accounts is a prerequisite for due diligence. A year-end that generates accounts just before a planned fundraising round ensures investors are looking at the most current data possible rather than out-of-date figures from a year ago.
To close your financial year, you need to provide your accountant with a complete record of all transactions. This includes all invoices issued, bills received, bank statements for every company account, and details of any share capital issued or changed during the year. You should also provide a record of any company assets purchased, such as laptops or machinery.
If your company has employees, you will need to provide final payroll records. Having these organised throughout the year using digital accounting software makes the Financial Year End a simple review process rather than a stressful search for missing paper receipts. Proper preparation ensures your financial statements are accurate and filed on time.
