Annual Accounts Preparation
Year-end accounts preparation refers to the process of compiling financial statements at the end of the financial year. Annual accounts filing provides a summary of a company’s financial performance and position over the space of one year.
For the following organisations and business structures, the preparation of annual financial statements is a requirement:
- Public Limited Companies (PLC)
- Private Limited Companies (Ltd)
- Partnership
- Limited Liability Partnership (LLP)
- Sole trader
- Community Interest Company (CIC)
- Charity or another non-profit organisation
Our Annual Accounts Filing Services
Often considered an annual headache, here at Hartley Fowler, we ensure that year-end accounts preparation is as painless as possible. Our expert team will either carry out their work on-site or they will take your accounting records away and leave you in peace until the end of the process. When you engage our annual accounts preparation services, you’ll be free to choose.
Annual accounts preparation must be accurate, especially if you have decided not to prepare monthly or quarterly management accounts during the course of the year. When annual accounts are prepared and delivered in good time after the year’s end, you will be able to use them as a management tool. This document will typically form the basis of lending decisions from banks or other financial institutions. It is imperative that you employ the right professional partners to assist you with year-end accounts preparation.
Experts in the preparation of annual financial statements
Our experienced team can assist with:
- Preparing accounts to help in the completion of self-assessment tax return
- Producing financial statements for the directors and members of a company or LLP
- Where appropriate, preparing filleted accounts to file at Companies House; we aim to minimise the amount of your financial information that is made public
- Preparing your accounts to agreed timescales and deadlines.
Benefits beyond annual accounts preparation
As well as preparing and filing your annual accounts, we take the time to explain them to you. When you fully understand your business’ finances, you can plan more effectively for the future.
Our annual accounts preparation services also:
- Highlight opportunities where we can help you minimise your tax liability
- Identify areas of your business where you could make improvements
- Help you measure your success and identify what actions you need to take to hit your business goals
Next Step:
Looking for help with year-end accounts preparation? Please get in touch with our friendly team for advice or questions about our annual accounts filing services. Alternatively, book your free consultation today.
FAQs
Annual financial statements show a company’s financial performance over the fiscal year. Preparing your annual accounts involves:
1. Organising your records: Gather invoices, receipts and bank statements for the year.
2. Creating core statements: Prepare a Profit and Loss (P&L) statement, balance sheet and cash flow statement.
3. Documenting notes and disclosures: These provide additional information about specific items in your financial statements, ensuring a comprehensive understanding.
The preparation of annual accounts involves taking a business’s annual financial records and verifying that all necessary adjustments have been made. The final accounts will then be prepared following relevant accounting standards.
Medium and large businesses must submit full annual accounts to HMRC and Companies House. They should include:
1. A Profit and Loss (P&L) statement
2. Director’s report
3. Balance sheet
4. Name and signature of the company’s director
5. Notes about the accounts
6. An auditor’s report (unless the company is exempt).
Annual accounts for smaller and dormant businesses will look slightly different.
The year-end accounting process consists of several key components, including calculating profit and loss, analysing the balance sheet and understanding your cash flow statements. To ensure the process runs smoothly, businesses must maintain accurate and up-to-date records throughout the year and seek professional advice if required.
Documents that are generally required by an accountant to prepare your annual accounts include:
1. Bank statements
2. Stock value
3. Petty cash records
4. Purchase and invoice receipts
5. Sales and income records
6. Finance agreements
7. Loan statements
8. Payroll records
9. Purchase invoices and receipts
10. Copies of VAT returns submitted throughout the year
11. Mileage records
12. Credit card statements
13. Assets that were sold, scrapped or disposed of during the financial year
14. Assets purchased throughout the year
15. Any other expenditure incurred
16. Dividends paid to the shareholders or drawings paid.
You can prepare and file your own company accounts. However, enlisting the expertise of an experienced accountant can ensure the task is completed quickly and accurately, saving you valuable time and effort.
The deadline for sending your annual accounts to Companies House is nine months after the end of your company’s financial year. However, if this is your first time submitting accounts, the deadline will be 21 months after the date of incorporation.