Annual accounts preparation for your business is an important requirement to fulfill legally. The process might not be a walk in the park. This is a complete task that requires expertise and time. Annual accounts are also called statutory accounts.
Get started with these statutory accounts when your financial year ends. It has all the financial records of your company that you have to send to the concerned authorities. Apart from company houses and shareholders, send out your statutory accounts to HMRC to file your tax returns.
If you are kind of stuck at the end of the year looking at some perplexing numbers; fold your sleeves and get to work. Make sure the scattered data is organized each year. Public and private limited companies have to file their returns.
If you own a small business, it can make things easier for you. That way you submit much simpler accounts.
What are Statutory accounts?
The statutory accounts include a detailed balance sheet that depicts the value of all your possessions. Show your profit and loss accounts. This clarifies your company’s sales and other costs throughout the financial year.
How to start preparing statutory accounts?
Companies have to file their accounts for each financial year. This is something that you have gone through with every member of your company. Accounts are publicly available if filed with the company house. You have to watch your clock because if you own a private company, you have to do it in 9 months. Otherwise, you will be facing penalties starting from £150 that goes up to £1,500. It depends on how late you file your report.
What are the conditions if you own a small company?
To consider your business to be counted by the tax body as a ‘small’ entity you have to meet some thresholds.
- You have to show your turnover of £10.2 million or less than that or £5.1 million. Make sure you have not more than 50 employees onboard.
- Businesses with a turnover of £632,000 fall in the category of ‘micro’ entity. The maximum turnover must be £316,000 with 10 employees.
What mediums do you use for end of year accounts?
You can use different accounting software available for annual accounts. You can go with the Company Accounts and Tax Online service (CATO). But this will work if you are a small entity. This will ease the process for you and you will be able to submit accounts to Companies House and HMRC with one go.
Can you do it on your own?
You can trust your skills if you think you can do your own accounting for your limited company. This includes all the preparation and filing of your annual accounts.
It is better that you take onboard an accountant for this purpose. Our professional accountants can do that for you with precise care. Sometimes it seems tiring to take time out of your business commitments to do all the technical work all by yourself. So, it can be difficult to manage everything alone. Especially, when you know that any mistake you cause will result in harsh penalties. A professional hand can keep these kinds of troubles away.