At National Accountants, what we offer is a lot more than just the preparation of Statutory Accounts for you. It’s not even submitting them for you to Companies House. We believe in being holistic in everything that we do and that starts with helping all our clients understand all that is involved in their own company projections and financials and help them to run their business better. We believe that this is the foundation for going forward and having a small business that goes from strength to strength.
Often also called end of year accounts or annual accounts, statutory accounts have to be submitted by every limited company within a period on nine months after the year end for the company. The accounts have to be submitted to Companies House. For a small company this is a much less complicated procedure than for a larger one. What is required are financial reports that set out how the company has performed financially through the year with a statement of profit and loss. It will also show how the company has performed through the year and the position at the end of the year, through a balance sheet. Information of interest to shareholders will also be presented through disclosures.
Full compliance with Generally Accepted Accounting Practice (UK GAAP) or the International Financial Reporting Standards (IFRS) will be required made up of:
This document will demonstrate how the business has performed over a set time. Received income and detailing of expenses would typically be listed according to each businesses unique circumstances. A business in the retail sector might want to see the expenses and the income itemised against each of the stores in the group while a building firm might want their profits, per project, itemised. It follows, therefore, that profit and loss needs to be tailored to the type of company, how much and what detail is required and how often this information is needed.
The purpose of the balance sheet is to show the financial position of any business at a certain point in time. A balance sheet will be drawn up with the use of notes that should help to illuminate key business ratios such as debtor and inventory days and liquidity ratios with the aim of planning cashflow for the business.
Here, key information for stakeholders to the business can be highlighted and might include things such as:
Larger companies are required to comply with The Companies Act of 2006 that mandates production of a Director’s Report within their annual accounts so that there can be corporate transparency. There will be details of the main activates of the company and the impact on the business of any significant event that has occurred during the year. This report presents more detail on the performance of the business during the previous 12 months and any impact from regulations or in outlook for the company, economically. Dividends might also be mentioned in the Director’s Report.
This kind of report is only needed when a company is having an audit, either voluntarily or compulsorily. The company auditor will provide this report and will review whether or not the business is accurately reflected in the accounts.