FY End Checklist: What Every Business Must Do Before April 1st

Tushar Gauba
Mar 7
2 min read

As the financial year draws to a close, businesses must take crucial steps to ensure financial accuracy, tax compliance, and a seamless transition into the next year. A well-organized FY-end checklist not only prepares your business for smooth audits but also maximizes tax benefits. Here’s everything you need to do before April 1st.

1. Reconcile Your Books

Accurate financial records are essential for tax filings and audits. Before the year ends, ensure that:

Bank statements match your books – Verify all transactions against your ledger.
Outstanding invoices are cleared – Follow up on pending payments.
Inventory records are updated – Conduct a stock check for accuracy.
Expense records are complete – Ensure all business expenses are recorded and categorized correctly.

Reconciling books ensures financial clarity and prevents compliance issues in the next financial year.

2. Claim All Pending Deductions

To minimize tax liability, review and claim all eligible deductions, including:

Depreciation on assets – Ensure all business equipment, machinery, and vehicles are accounted for.
Business expenses – Rent, utilities, salaries, professional fees, and marketing costs.
Employee benefits – EPF, ESIC, and other statutory deductions.
Tax-saving investments – Ensure you utilize Section 80C, 80D, and 80E deductions before the deadline.

Missing out on eligible deductions can lead to unnecessary tax payments, so act before March 31st.

3. Review Business Loans & Liabilities

Assessing your business loans and liabilities is essential for financial planning. Before FY ends:

Check repayment schedules – Ensure timely EMI payments to avoid penalties.
Consider refinancing options – Lower interest rates can improve cash flow.
Assess working capital needs – Plan for future business expenses and loan requirements.
Clear short-term liabilities – Reduce outstanding debts where possible.

A structured financial strategy will improve business liquidity and growth planning.

4. Complete Statutory Filings & Compliance

Non-compliance with tax and statutory requirements can lead to penalties. Ensure all filings are up to date:

GST returns – File pending GSTR-1, GSTR-3B, and annual returns.
TDS and TCS filings – Ensure correct deductions and timely deposits.
Income tax filing – Verify advance tax payments and outstanding liabilities.
ROC filings for companies – Submit necessary returns and compliance documents.

A clean compliance record protects your business from legal complications and penalties.

5. Set Financial Goals for the Next Year

With the new financial year approaching, take this opportunity to plan ahead:

Set revenue targets – Define achievable sales and growth milestones.
Budget for expenses – Allocate funds for operational and capital expenditures.
Plan for tax-saving investments – Start early to maximize benefits.
Evaluate business performance – Identify areas of improvement and strategic expansion.

Financial planning ensures business stability and long-term growth.

Final Thoughts

A structured financial year-end checklist simplifies audits, tax filings, and business planning. Taking proactive steps before April 1st can help maximize deductions, ensure compliance, and position your business for success.