Accounts

Annual Accounts – Annual accounts are one of the most important pieces of information a business receives each year. They provide a snapshot of the company’s performance over the last 12 months. They include a profit and loss statement and a balance sheet. The profit and loss gives the owner details of sales, direct costs, operating expenses, tax and net profits. The balance sheet provides a picture of the business`s health at particular point in time. It includes a business`s assets including who owes it money, and liabilities like who it owes money to and what it owes to its shareholders. To support all this are detailed notes which provide further detail on some of the figures.

Statutory Accounts – Every Limited company is required to file Accounts at Companies House, normally within 9 months of their year-end. These Statutory Accounts are based on your Annual Accounts above, but for most Small & Medium sized businesses it just isn`t necessary nor desirable to file all that information with Companies House. So, a shortened down version of the Annual Accounts, which removes the profit and loss detail is filled instead. These accounts are also filed with HMRC, and so it`s these that determine your company`s corporation tax liability.

Management Accounts – A timely insight into the performance of your business now. Management accounts give you a real time, up to date, picture of how your business is doing. It helps to spot problems early like cashflow tightening up or costs on project beginning to creep.