How can you file your statutory accounts on time
Statutory accounts are accounts also known as annual accounts. It is a type of financial report that private and public companies have to prepare at the end of every financial year. These records are very useful and necessary for observing the financial health of any company. Statutory accounts can highlight warning signs of all potential financial troubles, as well as highlight efficiency and success.
Submitting statutory accounts is a legal requirement and can be a difficult task. But we will help you to file your statutory accounts and share some tips with you. Let us see how you can file statutory accounts.
What things need to be included in your statutory accounts?
For the limited companies in the UK, statutory accounts need to typically include the following:
- A balance sheet
- Profit and loss account
- Notes about the accounts
The balance sheet shows the value of everything owned by the company, in addition to the profit and loss, sales on the account of the financial year. Notes made of accounts give information about who is owed money and what kind of payments are being made. In addition, a director and an auditor’s report can be included based on the size of your company.
The director’s report summarizes the company’s dividends that would likely be paid to shareholders, as well as the directors’ names, business activities, and events that can be seen in the balance sheet. Large companies use the director’s report as an opportunity to recapitalize the previous year and give an account of the company’s financial performance while waiting for the next financial year.
You need to start preparing your statutory accounts early
It is best to prepare your statutory accounts early so that reports can be kept together. Statutory accounts are required to be submitted to the shareholders, Companies House and HMRC as your tax return at the end of the financial year. A copy of the statutory accounts has to be sent to every member of your company so that when you submit it to Companies House, it is available too for the public.
Note: Your Company’s initial statutory accounts must be filed 21 months after registering with Companies House and then, nine months after the end of the financial year.
According to the UK government, if your business is small and mid-size, you may have the option of sending simpler accounts to the company house and a waiver from being audited. You can also have the option to use the Company Accounts and Tax Online service so that you can submit your accounts to HMRC and Companies House in one go.
If you are unsure what’s the best time to file your statutory accounts? Get in touch with us +44 20 7096 0555
Follow statutory accounts preparation checklist:
Before submitting statutory accounts, make sure that you have prepared the statutory accounts checklist or not and whether you have completed the housekeeping:
- Just make sure you are claiming all legal expenses
Before filing statutory accounts, it is important that you claim all legal business expenses before the end of your financial year. Remember that every pound you claim as a business expense is a pound stripping your overall profit, and lower profits mean you’ll have to pay less corporation tax.
- Chase overdue invoices
Do you know that small businesses spend around £ 5,000 a year because of late payments? Your statutory accounts need to be accurate, so before the end of your financial year, play the role of a debt collector and chase up clients whose payment is due or until receive money and payment.
- Ensure that all your paperwork is in order
You have to back up your accounts so before the end of the year make sure that you have records available such as income, expenses, supplier’s statements, etc.
Get help from some software or an accountant
It is difficult to prepare and file your accounts but it is also possible to do them yourself. With the help of accounting software, you can format and prepare your statutory accounts and file as well. It is said that most companies appoint an accountant to deal with their finances. The same accountant meets and ensures all your legal requirements.
You can file online:
This method is also very simple and fast as well as reliable. All the necessary information will be taken from you before you submit the accounts and when the government receives your accounts, it will send you an automated confirmation email which will ensure that they have accepted the information given by you.
When filing your statutory accounts, double-check the required financial statements and format.
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