Statutory accounts are the financial records for an annual report that every limited company in the United Kingdom is required to prepare, by law or otherwise (for example, if they have publicly available shares). These reports provide information on how much money was made for one year and what happened after being handed off between shareholders/owners.
It also tells them whether there will be another upcoming financial season where documents like this need filing again. Always send annual accounts to the proper parties. Copies of statutory accounts are often required for corporation tax calculations, so make sure you send them off when the time comes. You may also want to submit these documents if there’s any potential wrongdoing or litigation against your business.
The court will take their information from what’s on file here first before anything else. Annual financial statements can have many uses outside just assessing company finances; they’re frequently looked at by regulatory bodies like Companies House to find out about possible issues with governance practices.
Copies of statutory accounts should always be sent to Shareholders, Companies houses (a United Kingdom regulatory body), HM Revenue and Customs (HMRC) for the government’s records on any tax due owed by your company or its shareholders.
You should also send copies to those who attend the general meeting, so all members know what decisions are being made with their hard-earned money.
The difference between management and statutory accounts is like night and day. Management accounts can be produced at any point in time. Still, for the Statutory Accounts, you must file them within a set timeframe each year, or your company will face the consequences of fines from financial institutions who rely on accurate reporting to provide loans with confidence.
A great example would include when mortgage companies need information about how much money they have available to get approved faster than if there were delays. This type of business needs certainty more than anything else – especially while making loan offers.
A small company can be anything, but most commonly, they have less than £10 million in turnover turnover and £5.1 million on their balance sheet and less than 50 employees.
Smaller businesses choose to send out abridged accounts (simplified reports) when submitting documents like director’s reports; these contain more basic information about you as an organisation that may make public appearances difficult for certain parties looking into doing business with your firm.
The company’s turnover determines the criteria for classification as a micro-entity. There are three different levels: Turnover less than £632,000, £316000 or less on its balance sheet and less than 10 employees.
Suppose you fall into any of these categories. In that case, it may be beneficial to prepare more straightforward statutory accounts and send them off with just information relevant to this status instead of filling out all those pesky details that apply only if your business has higher earnings or assets, according to Companies House.
Companies House has a precise definition of what qualifies as “dormant”, and it’s not just about the amount spent during the last financial year, but also other factors, including financial transactions that need to be reported while being active.
This includes fees paid by companies for late filings or shares bought. If your company does not have these additional requirements, then you can skip having them audited at all.
When it comes to preparing statutory accounts, there are three main rules that you must follow: the IFRS Standards or New UK GAAP for all limited companies and annual reports must include a balance sheet that shows how much your company owns at year-end any debts. In addition, the signature of directors should appear on these documents so they can accurately capture its financial state in both good times and bad, profit & loss statements (P&L) need not only cover net profits but also reveal where every penny went after those figures were extracted from revenue streams.
Also, you need to include a directors report and an auditor’s report. This is because larger companies are audited more often than smaller ones since they have access to these reports for internal use and provide information about themselves externally with tax returns or other filings submitted under law such as those obtainable from Companies House.
It is not an easy job to file taxes on time, but it’s worth the effort. If you need help from a professional, then accountants will ensure that everything falls into place and your company complies with all legal requirements for publicly available filing accounts, so directors aren’t held accountable for any inaccuracies in data collection.
It can be challenging to do our taxes every year and make sure they’ve filed accurately, especially since this information becomes a public record once submitted.
You must file your annual accounts with Companies House within 9 months of the end date for your company’s financial year. This ensures compliance and prevents any fines or other penalties from arising, so be sure to do it on time.
A well-prepared business is a happy one. These documents provide you with the tools to ensure your company runs smoothly and provide valuable information for forwarding planning, decision-making, or goal setting.
Preparation will help ensure that any project undertaken by an organisation has all its necessary supplies to succeed at whatever level it needs to – whether this means meeting deadlines on time, staying within budget limits throughout every phase of development (or even finalising financial records).
We pride ourselves on getting an accurate understanding of your business needs and the sector in which you operate. We will prepare all necessary accounts so that future tax planning opportunities are at their disposal for as long as possible.
We’re experts at highlighting strengths within any budget, so they shine brighter than ever before without even trying too hard; plus, when there are problems needing attention (which sometimes happens), our services never fail to come up with creative ideas on how best fix them or suggest new strategies altogether because of the experience gained over the years.
If you need an audit or other financial service, we can help. Our bookkeeping and accounting services will provide your company with more reliable information to meet the demands of any market environment while reducing time and cost for preparing year-end accounts.
At our company, we’ll listen to you and your business to provide the best possible service and recommend ways that you can improve growth in the future. We can help you with your accounts, so contact us today and book your free consultation.
Our process is fairly straightforward. We utilize approaches that are ideally tailored to your business sector’s performance requirements.
Do you have questions about your Statutory accounts? Are you looking for professional Statutory accounts services? We are happy to assist you in any way that we can.
A Statutory accounts expert will talk to you about your needs. We are happy to serve as your Statutory accountant.
Next, you need to say “YES.” We can provide a fixed quote, so that you only pay for the level of services that you require.