Year-end accounts and statutory accounts are all the same thing. These terms all refer to the same thing: financial statements that limited companies must prepare each year to meet statutory requirements.
Financial statements are prepared using financial records that a limited company should update every year. If a small company has few transactions, this can be done in a spreadsheet. However, larger companies or those who are looking to grow their business should use accounting software. Accounting software can assist you streamline your bookkeeping, reduce costs, and save time.
Book a meeting today with the accounting services London experts to learn more and see how we can help your business implement accounting software.
What Do Limited Companies Need to Do with Their Accounts?
Companies House must receive limited company accounts annually. They also need to be shared with shareholders and anyone else who attends company general meetings. A limited company director has the responsibility of presenting financial statements to shareholders. HMRC receives the statutory accounts along with a Corporation Tax return.
The Full Set of Statutory Accounts for a Limited Company Consists of:
Statement of profit or loss, and other comprehensive income. Often called P&L.
A balance sheet
Statement of cash flows
Statement of equity changes
Notes to the accounts
Report of a director
Are Limited Company Accounts Public?
Yes, the accounts of limited companies submitted to Companies House are public and can be viewed by anyone. Don't worry if someone tries to steal your business model and your secrets about managing it. These details are not covered in limited company statutory accounts. Companies House allows people to check if they have submitted their limited company annual accounts and if they are in compliance with their statutory responsibilities.
How Can I Prepare My Own Accounts For a Limited Company?
Absolutely! You can create limited company accounts by yourself and submit them to Companies House or HMRC. Please be aware that limited company annual accounts must comply with different Financial Reporting Standards like FRS102 and FRS105. Different standards can mean different accounting treatment of different elements and different rules for how your statutory accounts are presented.
You can't choose the standards you like, there are rules that govern which standards can be used by limited companies. Limited companies with fewer employees can prepare simplified accounts, which means that not all financial statements will be required.
What Happens If you Don't File Accounts For a Limited Company?
Private limited liability companies have nine months to submit annual limited company accounts to Companies House within the financial year. This gives you ample time to complete your bookkeeping, adjust the accounts and prepare them to meet the financial reporting standards.
Late filing penalties are an unnecessary expense for your business. So, try to adhere to the filing deadlines of your company's annual accounts. To know more about the same, you can always connect with the company annual accounts Service London experts and get all the assistance you need related to it. If you are looking for experts to help you with it, then hiring Mint Accountax can certainly be the way to go. Good luck!
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