Submitting your new company’s very first year-end accounts can seem a bit daunting. When you read that your statutory accounts must meet either International Financial Reporting Standards or UK Generally Accepted Accounting Practice, it all sounds very forbidding. However, with plenty of time to prepare, an efficient accounting system in place and good advice and support from your accountant, preparing your first year-end accounts can be a smooth and stress-free experience.
It’s all in the preparation
Having an accounting system that suits your business from the outset will make things easier when it comes to producing year-end reports. Online accounting systems, such as Xero, put all your information in one place so all you need to do is generate the reports and print them off. You will still need to make sure all your paperwork is in order and ready though and there are a few things you will need to allow plenty of time to do:
- Expenses – make sure everyone in the company has their expenses submitted correctly and on time
- Overdue invoices – chase up any money that is overdue for payment
- Paperwork – ensure you have all the statements from your suppliers, bank and credit card statements and invoices you have generated
With all this in place and the help of your accountant, submitting your accounts should be no problem.
Annual Accounts to Companies House
All companies have to submit Annual Accounts to Companies House. Fortunately, small businesses (classified as having a turnover of £6.5million or less, £3.26million or less on their balance sheet or 50 employees or fewer) are only required to submit Abbreviated Accounts, which consist of the balance sheet and any associated notes. This must include the company director’s name and signature. Accounts can be filed online, along with your Tax Return, or separately if you prefer.
Company Tax Return to HM Revenue and Customs
Your full statutory accounts must include the following:
- Balance Sheet – listing the value of everything the company has, owes and is owed on the last day of the financial year
- Profit and Loss Account – detailing the company’s profit and loss throughout the year through its sales and running costs
- Notes about the accounts – outlining any additional information required
- Director’s Report – including details on the company’s principal activity, political and charitable donations, share capital and additional information, such as a report on the business’ performance.
Some companies may need to file two tax returns if the day they started trading is not the same as the start of their accounting period.
At Approved Accounting, we are more than happy to prepare and file your accounts for you. Not only that, but we will support you throughout the year to make sure that come the year-end everything is in order within plenty of time to complete your accounts in a stress-free manner.
To find out how we can help your business, call 01730 823 000 or email Jon.