It’s the last week of Ashadh. Your accountant is asking for missing bills, the godown needs a stock count, and three customers still haven’t confirmed their balances. Every year the rush feels the same. A clear fiscal year-end checklist turns that rush into a plan.
Nepal’s fiscal year runs from Shrawan 1 to the last day of Ashadh. Whatever your books show on that last day becomes your official picture for the year. So small gaps, such as an unrecorded purchase or a wrong stock figure, travel straight into your tax return.
In this guide, you’ll get a 12-step fiscal year-end checklist for businesses in Nepal, plus what to do after Ashadh. We’ll also show where Udyot ERP, a cloud business system built for Nepali companies, saves time.
Key takeaways
✔ Start your fiscal year-end checklist before Ashadh ends, not after. Clean books are far cheaper to close than messy ones.
✔ Reconcile bank, stock, customers and suppliers first. Everything else depends on those four.
✔ VAT, TDS, advance tax and payroll need a final review before the books close.
✔ After Ashadh, your audit and income tax return come next, so keep records ready.
✔ A connected system keeps one set of numbers, which makes year-end faster for you and your CA.Why a Fiscal Year-End Checklist Matters in Nepal
Year-end isn’t just paperwork, because your closing numbers feed your income tax return, your audit, and your loan applications. Banks and lenders usually ask for year-end financial statements, so a messy close can also slow a loan.
Nepal also has its own calendar quirks. The fiscal year starts in mid-July, which surprises many people because the Nepali New Year begins in Baisakh. We cover the dates in our guide to Nepal’s fiscal year.
Timing matters as well. Under Section 96 of the Income Tax Act, 2058, you submit your income return within three months of the income year ending. For most businesses, that means the end of Ashwin. Extensions can apply, so confirm the current notice on the IRD website.
Meanwhile, many owners leave everything to the last two days of Ashadh. That’s when errors multiply. A step-by-step list, however, spreads the work across the final weeks.
Fiscal Year-End Checklist: 12 Steps Before Ashadh Ends
Work through these steps in order, because each phase builds on the one before it.
Fiscal Year-End Checklist Part 1: Clean Up Your Books
Step 1: Record every pending transaction. First, gather loose purchase bills, expense slips and cash memos. Then enter anything still missing. Unrecorded expenses distort your costs, and unrecorded sales hide income, so both cause trouble later.
Step 2: Reconcile every bank account. Match your books with the bank statements line by line. Also look for cheques not yet cleared, bank charges you forgot, and deposits recorded twice. Your closing bank balance should match the statement, apart from clearly listed items.
Step 3: Confirm customer and supplier balances. Send a short balance confirmation to your major customers and suppliers. Udharo balances often differ by a few thousand rupees, and those gaps turn into disputes. So settle them now, while memories are fresh.
Step 4: Clear suspense and unmatched entries. Next, check for amounts parked in “other” or “suspense” accounts. Move each one to its proper head. If you can’t explain an entry, ask your CA before the audit does.
Udyot tip: Udyot keeps accounting, sales, purchases, banking and ledgers in one system, so you can trace each balance back to its entry instead of hunting through separate files.Fiscal Year-End Checklist Part 2: Count and Value Your Stock
Step 5: Do a physical stock count. Count what’s actually on the shelves and in the godown. Then compare it with the figure in your records. Ideally, count in pairs and write down each result as you go.
Step 6: Adjust for damaged and slow-moving items. Expired, damaged or obsolete goods shouldn’t sit on your balance sheet at full cost. So review each doubtful item with your CA, and keep your closing stock value realistic. Stock is often your biggest asset, which is why errors here swing your profit.
Udyot tip: Udyot supports stock adjustments and counts, along with inventory valuation reports. You can compare physical counts with system stock and see what your closing inventory is worth.Fiscal Year-End Checklist Part 3: Settle Tax and Payroll
Step 7: Reconcile VAT. Match your sales and purchase records with your VAT returns. Also check that every input VAT claim has a valid supplier bill. If you need a refresher on the process, read our Nepal VAT filing guide.
Step 8: Review TDS deductions and deposits. Confirm that you deducted TDS on salaries, rent and professional fees, and that you deposited it. Year-end provisions deserve a second look, because owners often forget TDS on accrued items such as audit fees.
Step 9: Check your advance tax. Compare the advance tax you’ve paid with your expected tax for the year. Instalments are generally due during the year, with the last one by the end of Ashadh. However, rules can change, so confirm the current schedule with your CA.
Step 10: Finalise payroll. Make sure every employee’s salary, allowances, leave balances, bonus, provident fund and social security contributions are right. Then confirm that you’ve paid and recorded each one. Payroll errors are easy to miss, yet hard to fix after closing.
Udyot tip: Udyot's payroll module handles attendance, leave, payroll processing and payslips. Its VAT-ready workflows track input and output VAT, and it can manage TDS-related transactions, so these year-end checks start from clean data.Fiscal Year-End Checklist Part 4: Adjust, Close and Report
Step 11: Post adjusting entries. Some costs and income belong to the year even if no bill has arrived. For example, record accrued expenses, prepaid items and depreciation on your fixed assets. Ask your CA which adjustments apply to your business and which accounting framework you follow.
Step 12: Review your financial statements and back up. Run your profit and loss statement and your balance sheet. Compare them with last year and ask why big lines moved. Finally, save a backup copy of your records. If you want to understand how the two reports differ, see our Udyot blog for the balance sheet and profit and loss guide.
Udyot tip: Udyot's accounting module includes a Profit & Loss report, a Balance Sheet and cash flow tracking, so your closing reports come from the same ledger entries.Quick Summary: Steps and Where Udyot Helps
Short on time? Here’s the full list at a glance.
| Step | What to do | How Udyot helps |
| 1. Pending entries | Record all bills and slips | One system for sales, purchases and expenses |
| 2. Bank accounts | Match books to statements | Banking records beside your ledgers |
| 3. Party balances | Confirm with customers and suppliers | Customer and vendor management |
| 4. Suspense items | Move each to the right head | Double-entry ledgers show every entry |
| 5. Stock count | Count shelves and godown | Stock adjustments and counts |
| 6. Stock value | Write down doubtful items | Inventory valuation reports |
| 7. VAT | Reconcile sales and purchases | Input and output VAT tracking |
| 8. TDS | Check deduction and deposit | TDS-related transactions |
| 9. Advance tax | Compare paid vs expected | Profit & Loss reports for estimates |
| 10. Payroll | Finalise salaries and benefits | Payroll processing and payslips |
| 11. Adjustments | Post accruals and depreciation | General ledger management |
| 12. Reports and backup | Review statements, save a copy | Balance Sheet, Profit & Loss, cash flow |
What Comes After Ashadh
Closing the books is only half the job, because a few more tasks follow once the year ends.
First, your audit. Private limited companies generally file a D3 income tax return, which comes with audited financial statements. So give your auditor clean schedules early, because audit delays push back your return.
Next, file your income tax return within the deadline, or request an extension if you need one. Later in the year, you’ll file an estimated tax return and pay instalments for the new fiscal year. Companies should also plan their annual general meeting and filings with the Office of the Company Registrar. Check the exact timelines with your CA.
Finally, open the new year cleanly. On Shrawan 1, closing balances become opening balances, while sales and expenses start again from zero. Keep your year-end records safe, since audits and tax reviews may ask for them later.
Common Year-End Mistakes to Avoid
A few slips show up every year. Waiting until the final two days is the biggest. Skipping the physical stock count is next. Others include leaving bank differences unexplained, forgetting TDS on year-end provisions, and mixing personal expenses with business ones.
Each of these is easy to avoid with a short monthly routine. For instance, reconcile your bank each month, record bills weekly, and count high-value stock quarterly. Then year-end becomes a review, not a rescue.
How Udyot ERP Makes Your Fiscal Year-End Checklist Easier
Year-end hurts most when your data lives in many places. Sales sit in one tool, stock in a spreadsheet, and payroll in a notebook. Udyot ERP, however, puts them together.
Udyot ERP is a cloud-based ERP platform built for Nepali businesses. Here’s how it supports your fiscal year-end checklist:
- One ledger: double-entry accounting and general ledger management keep every transaction traceable.
- Closing reports: Profit & Loss, Balance Sheet and cash flow tracking come from the same entries.
- Stock control: real-time stock monitoring, stock adjustments and counts, and inventory valuation reports.
- Tax readiness: VAT-ready workflows, input and output VAT tracking, and reports for reconciliation and tax preparation.
- Payroll: attendance, leave, payroll processing and payslip generation.
- Cloud access: share reports with your accountant and auditor without sending files back and forth.
Udyot is also IRD verified. Browse the full feature list or compare the pricing plans.
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Frequently Asked Questions
When does the fiscal year end in Nepal?
The fiscal year ends on the last day of Ashadh, and the new year starts on Shrawan 1. That’s mid-July in the English calendar. The Nepali New Year in Baisakh doesn’t change it.
What should be on a fiscal year-end checklist?
A good fiscal year-end checklist covers pending entries, bank reconciliation, customer and supplier balances, stock counts, VAT, TDS, advance tax, payroll, adjusting entries and final reports. Use the 12 steps above as a starting point.
When is the income tax return due after the fiscal year ends?
The Income Tax Act, 2058 asks you to submit the return within three months of the income year ending. For most businesses, that’s the end of Ashwin. Extensions may be available, so check the latest IRD notice or ask your CA.
Can Udyot ERP help with year-end closing?
Yes. Udyot brings accounting, stock, payroll and VAT into one system. You get Profit & Loss and Balance Sheet reports from the same ledger entries. See the Udyot features page for the current list.
Final Thoughts on Your Fiscal Year-End Checklist
Year-end doesn’t have to feel like a fire drill. Begin early, clean up your books first, and then move through stock, tax, payroll and reports. That way, you’ll close with confidence instead of guesswork.
So pick one step to finish today. Reconcile a bank account, count one shelf, or confirm one customer balance. After that, move your records into one system, so next year’s fiscal year-end checklist is a quick review.
Close the year with clean books.
Run accounting, stock, payroll and VAT from one Udyot ERP dashboard.
