Everything You Need to Know About Year End Accounts
Is it coming up to the end of your financial year? It’s time to sort out your accounts! Year end accountants are taken from the company’s financial records. Known as ‘statutory accounts,’ it is advisable to involve a qualified accountant, because you want to make sure that your year end accounts are prepared properly!
A Glasgow accountant from The Kelvin Partnership can be trusted with the big responsibility of having to prepare annual accounts. After working with a variety of different businesses we know that everyone has a different system of keeping financial records etc.!
Why do you have to prepare annual accounts?
The aim of year end accounts is to make sure that your company presents a report of the years financial activity. Using this information HMRC will estimate how much corporation tax your company will owe.
What do you have to include in year end accounts?
Included in your accounts should be:
- A balance sheet – this is something that should show the details of all the things the business owns, owes and is owed by the end of the financial year. This must be signed by the directors.
- A profit and loss account – this should give information about income and expenses (showing sales and running costs)
- Notes explaining more about the profit and loss and balance sheet
- Finally, a director’s report – a document that is prepared by the business director, giving a summary of the how the business has been performing over the past financial year, how it is performing at the current stage and the predictions for the future
What does ‘year end’ mean?
‘Year-end’ or ‘statutory’ accounts to be submitted at the end of the financial year. The financial year is independent to each company. If you have a limited company, your financial year will relate to the month when your company was incorporated. Your company will be given an accounting reference date (ARD), which will be the last day of that month and this is when your financial year ends.
So, for example, if you registered your company in November, your ARD will be the 31st November and your company’s financial year will run from 1st December to the 31st of November. The 31st November being the date in which your year end accounts are due.
Who do you send year end accounts to?
You must submit a copy of your annual accounts to HMRC and Companies House. Also, people who are concerned with the general running of the company and all shareholders.
Here at The Kelvin Partnership we like to make sure that our clients are kept up to date with the latest in financial news and advice. Look at our last post to learn more about how to hire a chartered accountant.
Interested in our accounting services? Contact us today!