“Do I Just... Sign It?”: A Friendly Guide to Reviewing Your End-of-Year Financials (Without the Panic)

So your accountant has sent you your end-of-year financial statements. There they are - a nice neat package with words like “Balance Sheet” and “Equity” and “Shareholder Current Account” staring back at you.

And now it’s time to start signing off financial accounts.

But here’s the thing: what exactly are you signing off on?

If you’ve ever felt a bit unsure (or downright nervous) about ticking that box and calling it a day - you’re not alone.

Here's the honest truth:

You don’t need to be an accountant to understand your end-of-year financial statements. But as the business owner, you are the one responsible for signing off financial accounts. That means it’s completely fair - and smart - to ask questions, check for anything odd, and understand the story your numbers are telling.

So, let’s break it down. No jargon. No pressure. Just a simple checklist to help you feel more confident reviewing your accounts before signing off financial accounts..

 

What to Look For Before You Sign Off

1. Does it feel right based on your year?

Start with your gut.

• Was it a good year, a tight year, or a quiet year?

• Does the profit (or loss) line reflect how things felt on the ground? If the numbers feel totally off, trust your instincts and ask us about it.

2. Is your income about right?

• Does the total income figure match what you think you earned?

• Any big jobs, grants, or sales missing?

This is often the easiest place to start — if something’s off, you’ll probably notice it here first.

3. Check those expenses

• Anything missing? Think: rent, subscriptions, software, contractors, ACC, your Xero subscription (😉), vehicle expenses...

• Any line items that make you go “Huh?”

We group similar expenses together, so if you’re not sure what’s included where — just ask.

4. How much did you pay yourself?

• If you get a shareholder salary, make sure it’s listed and looks right.

• If you take drawings (i.e. transfer money to yourself without PAYE), these will show up in your shareholder current account — see below.

5. Is your shareholder current account overdrawn?

This is accountant-speak for: Have you taken out more than you put in or earned?

If your current account is in the negatives, you might owe the company some money. It’s not necessarily bad — but it’s good to be aware.

 And yes, the company might need to charge you interest on that balance. (Fun!)

6. Do the bank balances look right?

• Is the bank balance on the Balance Sheet close to what was actually in your business account on 31 March?

• If it’s way off, let us know — something may not have reconciled properly.

7. Are there any unpaid invoices or bills sitting in there?

• Check for debtors (people who owe you) and creditors (people you owe).

• Are these current and accurate? Or should something be written off?

This is especially important if you use invoicing — you don’t want to be taxed on income you’ll never receive.

8. Are any loans or tax balances showing correctly?

• If you have a business loan, does the balance look about right?

• Does your GST payable look familiar?

• Is your tax payable figure close to what you expected?

Even if you don’t have all the answers — this is a good time to check in and ask.

Important: It’s OK to Ask Questions

Here’s the deal — you don’t need to know everything. You just need to be curious, proactive, and willing to ask when something doesn’t look right.

Your accountant won’t be offended. We’d much rather you ask now than feel confused (or stressed) later.

TL;DR: Your Pre-Sign-Off Checklist

Before you give the green light, ask yourself:

• Do the numbers reflect how the year felt?

• Does the income look complete?

• Are there any missing or odd-looking expenses?

• Is your shareholder salary or drawings correct?

• Is your current account overdrawn — and do you know what that means?

• Do the bank balances make sense?

• Are your unpaid invoices and bills up to date?

• Do loans, tax, and GST balances look reasonable?

If you’re unsure, pause and ask. You don’t have to be a numbers whiz — just a thoughtful business owner.

Before Signing Off: Book Your Annual Accounts Review

Before signing off financial accounts, we strongly recommend booking an Annual Accounts Review session.

This is a valuable opportunity to gain deeper insights into your end-of-year financial statements and explore growth strategies tailored to your business.

Here’s what you’ll gain from the session:

• A clear understanding of your end-of-year financial statements

• Confidence around your upcoming tax obligations

• Recommendations on how to structure your business more effectively

• Identification of tax-saving opportunities

• Insights into key performance drivers

• Actionable strategies to improve profitability and cashflow

• Personalised advice based on your goals

• An introduction to any services that could benefit you

The cost of the session is $375 + GST, and we’re confident you’ll find great value in this investment. We can meet at our Mangawhai office or virtually via Teams — whichever suits you best.

And remember, you don’t need to figure it all out alone. We’re always happy to walk you through your accounts, answer your questions, and explain your financials in plain English — because when you feel confident in your numbers, you’re empowered to make great decisions, and that’s what we’re all about.

Want to book your review? Contact us at 09 431 3068 or email support@mytwocents.nz — we’d love to help you make sense of your numbers and plan your next move with confidence.