Company Accounts Services

Under the Companies act 2016, private limited companies must produce a set of year-end accounts. Company accounts, also known as ‘statutory accounts’, give you an insight into the financial status of a company over a 12 month period. They are prepared for Companies House and HM Revenue & Customs every year and consist of the Balance Sheet and the Profit and Loss. You must always send copies of the company accounts to all shareholders, Companies House as well as HM Revenue and Customs (HMRC). Your company accounts must include, a ‘balance sheet’, which shows the value of everything the company owns, owes, and is owed on the last day of the financial year, a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year and notes regarding the account. 

Small companies and micro-entities can prepare less complicated accounts for Companies House. Full statutory accounts are still required to be sent to company members and delivered to HMRC as part of the Company Tax Return. In order to qualify as a small business, the company must have a turnover of £10.2 million or less and must have 50 employees or less. Similarly, Micro- entities are very small companies that have a turnover of £632,000 or less and have 10 employees or less. If your company is a micro-entity, you can prepare simpler accounts that meet statutory minimum requirements. 

If your company is called ‘dormant’ by companies’ house, this means that it has had no ‘significant’ transactions in the financial year. Significant transactions do not include filing fees paid to Companies House and penalties for late filing of accounts. Dormant companies that qualify as ‘small’ do not need to be audited.

If you make any corrections or any amendments to the company’s accounts it must be sent to Companies House on paper. If you do not file your accounts with Companies House by the deadline, you could face up to £1,500 fine. Therefore, it is essential to have a qualified accountant who can manage your company accounts effectively and accurately. On top of this, your accountant will also file your accounts before the deadline to help avoid any additional costs to your company.

Whether you’re a sole trader, a limited company with a single director, a partnership, or a large corporation, contact our accountants today.