Statutory accounts

Complete statutory accounts service
We don’t just prepare your year end statutory accounts, we take time to understand your business, identify opportunities to save tax, help you understand you financial performance and position of the business and much more…

Statutory accounts service

What Are Statutory Accounts?

Known as “Annual Accounts” or “Year-end Accounts,” all UK limited companies are required to submit Statutory Accounts to Companies House within nine months of their fiscal year’s end. The accounts of small businesses, on the other hand, are much easier to prepare than those of their larger competitors.

What’s included in statutory accounts?

The deadlines for filing your set of annual accounts are within nine months of your Accounting Reference Date after the first year.
Example: Company ABC Ltd. must file its annual accounts from 1 November 2019 to 31 October 2020 no later than 31 July 2021.

What information

do statutory accounts include?

Statutory Accounts prepared for Limited Companies in the UK must be fully compliant with IFRS (International Financial Reporting Standards) or the UK GAAP (Generally Accepted Accounting Practice). These will typically include the following;

01. Profit & loss (P&L) account

Profit & Loss (P&L) shows the performance over the company’s financial year. It would typically show a summary of income received and the types of expenses incurred. But, of course, every business is unique.
Most companies will also file a Company Tax Return with HMRCevery year to disclose their earnings, losses, loans, and other circumstances affecting their tax due.
A retail business, for example, with multiple stores, may want to see income & expenses split by each store. In contrast, a construction business may want to see the profitability of each project it undertakes.
P&L produced for management should therefore be tailor-made, keeping in mind the nature of business, the level of detail required, the frequency and the layout.

02. Balance sheet

A Balance Sheet shows the financial position of a business at any given point in time. A Balance sheet should be prepared with notes to help indicate key business ratios, such as liquidity ratios, debtor and inventory days etc., which can highlight risk areas, so you are in a much better position to plan any cash flow needs.

03. Key performance indicators (KPI’s)

Notes to the accounts shed light on crucial information that would be useful to any stakeholder of the business. Typical examples of these would include things like;

04.Directors report

The Companies Act 2006 requires all larger companies to produce a Director’s Report in their Annual accounts to improve corporate transparency. It talks about the business’s principal activities, any significant events incurred during the year and its business impact.
The report is an opportunity to provide greater detail about how the business has performed during the year any regulation impacts or changes in the economic outlook. It may also mention dividends the business intends to pay.

05.Auditors report

The Auditors Report is only required for Companies carrying out an Audit (whether Compulsory or Voluntary Audit) and is provided by the Company’s auditors. After a review, they will indicate whether the accounts give a true reflection of the business.
The report is an opportunity to provide greater detail about how the business has performed during the year any regulation impacts or changes in the economic outlook. It may also mention dividends the business intends to pay.

Different types of statutory accounts

Full Accounts must include all the essential reports such as profit and loss, a balance sheet, and detailed accounts. In addition to this, full accounts must also include an accountant’s report and a director’s report. Both of which provide further important information about the company.
We can send ‘Abridged accounts’ for companies that meet the Small Business or micro-entity criteria. Abridged accounts have a more straightforward balance sheet (a Balance Sheet and reduced number of notes to the accounts) – applicable if you do not want to include details like gross margins or annual profits. However, they exclude profit and loss.
A company is dormant if it has had no ‘significant accounting transactions during the accounting period or may have recently been set up but not traded as yet.

Criteria for small companies

If your company meets two of the following conditions, it is considered as a small business:
As a small business, you can send Companies House abridged financial statements. In addition, a director’s report, a profit and loss account, and the option to audit or not are also available to small businesses.

Criteria for Micro-Entities

If your company meets two or more of the following conditions, you are defined as a micro-entity:
Being a micro-entity means you do not need to prepare complex accounts, and you can send more straightforward balance sheets to Companies House instead. The same exemptions offered to small companies are also given to micro-entities.

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