One of the most difficult tasks for business people running limited companies is to prepare annual accounts for HM Revenue and Customs and Companies House. It is not only time-consuming, but it also requires a great deal of focus and concentration.
At AudTax, our services are designed to help you avoid the hassle. We will prepare the year end accounts on time, so that your operations remain flawless.
Year end reporting made simple!
As a business owner you may have to shelf other tasks in order to prepare the accounts for your limited company. You also need to have a full understanding of your financial position come the end of the year!
The year end process is inevitable, given that every company registered is legally obligated to do the submissions to companies house annually. You must do this every financial year, once year end comes around. But for some, this process can often feel complex and scary, which is why many business owners rely on us to sort it out.
What’s more, we explain every step to you so that transparency is achieved in the process. We want you to be fully informed about what is happening, every single step of the way.
Whether you own a big or small company, our team will give you details on some of the financial improvements that you can make. These could be to benefit a business already excelling or to help turn your business operations around.
We can go further than just sorting you year end accounts, and we will let you know how you can make savings by utilising tax allowances available, claiming expenses and other personal tax planning that can be done to reduce personal tax.
If you are vat registered business, then we will also file your VAT returns and can advise you on how to reduce your vat liability using different vat schemes.
What are year end accounts?
Put simply, year end accounts or annual accounts are a statement of your business for the year. It is like a balance sheet and income statement in one. These statutory accounts show your 12 month accounting period.
Your year end accounts are required by HMRC and Companies House and needed for businesses in order to make important decisions. They comprise of three main aspects – a profit and loss account, balance sheet and cashflow statement.
What about sole traders and dormant companies?
Sole traders need something similar but this does not need to go to Companies House as they are not a company. Sole traders will prepare annual accounts and file tax returns to HMRC only.
Year end accounts only need to be filed for businesses that are currently operating. If you have a dormant company, then statutory accounts are not needed to be filed with Companies House.
Choosing a year end
Deciding on a year end for your business can be important for financial reporting, especially for the first accounts.
When you have a new business it can seem like an unimportant aspect, but end of year accounting is important as it impacts when you pay corporation tax and your overall tax implications.
Therefore you should make sure that you pick a financial year end that suits your business, whatever your incorporation date. At AudTax we can help with this if you are not sure what approach to take.
What are the deadlines for filing financial reports?
There is a filing deadline for completing your financial information. This is within nine months of your year end. It is important to make sure your statutory accounts are filed by the deadline.
What are the implications of not filing your year end accounts on time?
This is not something you should ever allow to happen, they are statutory accounts!
You will receive a fine from Companies House if you fail to file on time, and although this only starts as a reasonably small amount, it accrues over time. You will also be chased for this amount.
You also cannot file your tax return for the financial year until you have submitted your company accounts. There will similarly be a fine from them and more serious chasing.
Also, businesses you work with can check Companies House to see how businesses they work with are faring. They will be able to see your business due date and that you have not filed your return. This could be very bad for your business reputation and will likely stop some people wanting to work with you.
How AudTax operate year end accounts
At AudTax we set up a year end accounting checklist for your business to ensure each aspect is covered. We understand all of the reporting duties and can help you with this.
The year end process includes your limited companies account and the company tax return in most circumstances. We would also usually complete the confirmation statement for updating company information and all the year end reporting too. This includes the Director’s report and also reviewing your previous statement to ensure that we are covering all bases.
Our services are all encompassing, and this would generally also include personal tax return for the directors. This is a part of the overall financial reporting for a limited company.
- Limited company accounts.
- Sole trader accounts.
- Rental property accounts.
- Dormant accounts.
- Partnership accounts.
These are all just as important to us and we ensure a high standard of work no matter how big or small our clients are. It is vital for us to complete all end of year reporting to the highest standards.
What paperwork is needed for statutory accounts?
If your company uses a system like Sage, Xero or Quickbooks, then you can provide us access to this to help us prepare your statutory accounts including aspects like the balance sheet.
If these are not systems that you currently use, then you will need to provide us with bank statements and income records and expenses. This is what we will use to complete your accounts along with paperwork such as unpaid invoices.