Financial Insight and Reporting with Expert Business Accounting Services at Wingate Accountants
At Wingate Accountants, we understand that having your business accounts prepared by professionals is not just about compliance; it’s about providing you with the crucial financial insights needed to drive your business forward. Our business accounting services give you the freedom to focus on what matters most—growing your business—while ensuring that your financials are accurate and up-to-date.
What Are Annual Accounts?
Annual accounts (also referred to as financial accounts, statutory accounts, or company accounts) are comprehensive reports summarizing your company’s financial activities over a specified period (usually 12 months). These accounts include financial statements that show a company’s transactions, operating performance, and financial position at the end of its financial year.
Who Must Receive the Accounts?
Limited companies are required to submit their annual accounts to:
Our Service Includes
- Companies House
- HM Revenue & Customs (HMRC) as part of their Company Tax Return
- Shareholders or guarantors (members)
- Debenture holders
- Any stakeholders entitled to attend general meetings
Key Components of Annual Accounts
Balance Sheet
A snapshot of your company’s assets, liabilities, and shareholder equity at the end of the financial year. It indicates the financial health of the company.
Assets include things like property, equipment, money in the bank, and accounts receivable (money owed by customers).
Liabilities are amounts owed, including loans, taxes, and accounts payable.
Profit and Loss Statement
This shows the company’s income and expenses over the year, revealing whether the company made a profit or incurred a loss.
It includes revenue from sales, operational costs, loan repayments, rent, wages, VAT, Corporation Tax, and more.
Notes to the Accounts
These are supplementary details that explain the numbers in the balance sheet and profit & loss statement. Some are legally required, while others provide further context to the financial data.
Director’s Report
A summary written by the board of directors about the company’s performance and future strategy. This report is mandatory for larger companies but not for small or micro entities.
Auditor’s Report
An independent review of the annual accounts to confirm their accuracy. Most companies are required to have this unless they qualify for an audit exemption.
Special Considerations
- Small Companies: These can file simplified (abridged) accounts, with fewer details required compared to larger companies.
- Criteria: Must meet at least two of the following conditions:
- Annual turnover ≤ £10.2 million
- Balance sheet total ≤ £5.1 million
- Average number of employees ≤ 50
- Criteria: Must meet at least two of the following conditions:
- Micro-Entities: These are even smaller companies that qualify for the simplest form of accounts. Micro-entities must meet two of the following:
- Annual turnover ≤ £632,000
- Balance sheet total ≤ £316,000
- Average number of employees ≤ 10
- Dormant Companies: Companies that have not traded during the year can file dormant accounts, which are much simpler. They do not need to submit profit and loss statements or directors’ reports to Companies House.
How to File Your Annual Accounts
Deadline
For the first year, annual accounts must be filed with Companies House within 21 months of company formation. After that, they must be submitted 9 months after the accounting reference date (ARD).
Corporation Tax Return
Your company’s annual accounts must be submitted to HMRC as part of your Corporation Tax Return within 12 months of the accounting period’s end.
Record-Keeping Requirements
To prepare your annual accounts and tax returns, you must maintain accurate records of all financial activities, including:
- Income and expenses
- Goods and services bought and sold
- Assets and liabilities
- Bank statements, loan agreements, and more
You are legally required to keep these records for at least 6 years from the end of the financial year to which they relate.
Benefits of Filing Your Annual Accounts on Time
- Compliance: Avoid penalties and interest for late filing.
- Business Insights: The accounts provide valuable information to assess your company’s financial health.
- Tax Efficiency: Properly filed accounts help ensure you pay the correct amount of tax and take advantage of allowable expenses.
If you’re unsure about how to prepare or file your accounts, it’s a good idea to consult a professional accountant to ensure everything is in order and to avoid costly mistakes.
