Your company’s annual accounts – called ‘statutory accounts’ – are prepared from the company’s financial records at the end of your company’s financial year.
You must always send copies of the statutory accounts to:
- all shareholders
- people who can go to the company’s general meetings
- HM Revenue and Customs (HMRC) as part of your Company Tax Return
- Companies House (unless you send ‘abbreviated’ accounts)
Annual accounts have to be done and sent to HMRC by the given deadline in order to avoid any late filling penalties. In most cases deadline is the end of the month of your companies incorporation date.
Your accountant normally prepares annual accounts for you, this is a better idea to save time and have it done more professionally, making sure that your reports meet the standards.
This is what your accountant will need from you in order to proceed with preparing Annual Accounts:
- The Company’s bank statements for the period of financial year.
Please note that bank statements must be those of your Business bank Account, only include personal account statement if for some reasons you were not able to use your business account, and you have some outstanding transactions. In this case please contact your accountant to discuss the matter.
- Any receipts or invoices for expenses incurred by the company.
This is necessary to track any expenses which might be paid by cash, like taxi fares, tickets and etc.
- Your cash book/ petty cash record
- Sales invoices (if any)
These are general points for small companies. If you are actively trading and are registered for VAT or PAYE there will be few more things needed. However if your accountant is appointed to deal with your company’s secretarial and manages your accounts, payroll and tax he might already have some of the required information.
Any accountant will appreciate neatly kept records. If you feel like saving time and wish to get your accounts done quick you might want to help your accountant by:
- Filing your invoices in a sensible way (by date; type or etc)
- Analysing your payments and receipts
- Making sure the documents you provide are only for the current accounting period
- Explaining any unusual activity on the accounts
Your accountant normally will contact you and constantly send you reminders of any outstanding issues, tax returns or other accountancy matters, so there is no need to worry too much if you have an accredited expert working for you.