Statutory Accounts

We will prepare your annual statutory accounts accurately and on time and submit them to Companies House and HMRC so that you don't have to.

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What are statutory accounts?

If you have a limited company or an LLP you will need to prepare statutory accounts for each financial year. These are submitted to Companies House and HMRC on an annual basis in order to meet the requirements of the Companies Act 2006 and the Corporation Tax Act 2010.  Failure to do so will result in penalties, so let us look after this compliance task for you.

What is included in statutory accounts?

Depending on the size of your company or LLP, the annual accounts/financial statements  could comprise:

  • Directors Report
  • Profit & Loss Account/Statement of Comprehensive Income Statement
  • Balance Sheet/Statement of Financial Position
  • Statement of Changes in Equity
  • Cashflow Statement
  • Notes to the Financial Statements

Most business owners don’t want to get involved in learning how to produce these technical documents.  As qualified accountants we are experienced in this type of reporting so we can do this for you.

How to prepare statutory accounts

In order to prepare full statutory accounts, multiple financial reports and business documents should be included as mentioned above. These documents help to explain the reasons behind the company’s business and financial performance during the accounting year.

How to prepare statutory accounts

In order to prepare full statutory accounts, multiple financial reports and business documents should be included as mentioned above. These documents help to explain the reasons behind the company’s business and financial performance during the accounting year.

Balance sheet 

This financial statement offers an overview of three key aspects which are used to determine the health of your business – the total assets, total liabilities, and the total of shareholders’ equity. The balance sheet is also required to have the name and signature of a director to confirm that they have approved the accuracy of the accounts.  

Profit and loss statement 

The profit and loss statement shows the financial activity of a business spanning a period of time, instead of an overview at a fixed point like a balance sheet. The profit and loss statement will detail the total revenue earned and total expenses paid by the business throughout the year. To find out the gross profit of a company, you just need to minus the cost of sales from the annual turnover figure. The profit and loss statement will normally contain extra information as well including earnings before interest, tax, depreciation, and amortisation (EBITDA).  

Cashflow statement 

The cashflow statement covers the movements of cash made by the company. It won’t consider the value of other assets the business might own, and it is different from the profit and loss statement because it only refers to when money has been fully received by the company and when money has been paid out. Therefore, the two can differ substantially in numbers and are used for different reasons. 

Notes about the accounts 

This additional supporting information explains both the balance sheet and profit and loss account and offers evidence to the figures. Certain notes need to be included as they are required legally as part of evidencing that specified accounting principles have been followed. You can also include extra notes which will help to further explain the company’s financial position.  

Director’s report 

This report should be put together by a company’s board of directors and is especially important to shareholders. For bigger companies that need to complete full statutory accounts, it is legally required to complete this report as part of holding the company to account for making decisions in the interest of its business and shareholders.  

Auditor’s report 

This should be completed by an external auditor or statutory accountant. It is an independent report and evaluation of a company’s annual accounts to verify its accuracy.

How we can help you 

Jan McDermott and her team specialise in all areas of accountancy and tax support for businesses, including statutory accounts services. If you need help and guidance in preparing your statutory accounts, our friendly team are on hand to not only manage your statutory accounts to ensure they are submitted accurately, but also advise you so you can understand and interpret the accounts. This can give you greater insights into your business and help you with growth and profitability in the long term.  

 

Get in touch with our specialists to take control of your statutory accounts.

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Frequently Asked Questions

Yes, and we often use Xero for this purpose.  However, we wouldn’t recommend that you push the button on the annual accounts yourself as you may not know about the all relevant disclosures that are required. 

More importantly, you will probably pay more tax than you need to.

Your first accounts need to reach Companies House 21 months after the day of incorporation.  For each subsequent year, the filing deadline is 9 months after your financial year end and late filing penalties will be charged if you file late.

Our client management system will ensure that you never miss a filing deadline.

After our initial meeting, we will prepare a unique, fixed fee proposal for you.  This is based on many things, such as the size of your business, the volume of transactions, and the quality of your accounting records.

 

Alan Robson

They provide us with a fully outsourced finance function so that our own team can focus on our business. They implemented Xero software from day one of the company meaning that we have real-time visibility of our business at all times, The monthly management accounts meetings we have with Jan really add value to decision-making and strategic planning and we wouldn’t be without them.

Peter Broxton

Their professionalism, expertise and client care are outstanding and they have supported our growing business no end. They look after everything from our bookkeeping, VAT, annual accounts, as well as claiming Research & Development tax relief, preparing budgets and forecasts and assisting with grant claims. The whole team are always responsive, friendly and reliable and we wouldn’t hesitate to recommend them to anyone looking for a trustworthy and efficient firm to look after their business finance requirements.

Scott Hackett

I moved my accounts over to Jan at the beginning of the year and have been extremely impressed with her attention to detail and precision. She’s made it easy for me to understand and manage all the key aspects of my accountancy, as well as offering useful suggestions of ways to improve and make things work more efficiently for me and my business. I’d highly recommend Jan and her team to anyone looking for professional, friendly, and reliable accountants that truly get to know you and offer a tailored service.”

Alistair Evans

Jan McDermott & Co have been our accountants for over 15 years and have not only ensured our accounting records are accurate and legal, but also provided us with first class advice to help us grow. They recommended our move to Xero accounting software which has revolutionised our business, allowing us to create predictable income through the use of Go Cardless Direct Debits, and streamlining our day to day accounting operations. Jan and her team are friendly,  easy to work with and take time to understand a particular problem or situation. I wouldn’t hesitate to recommend them to any business that wants an accountancy firm they can grow with and depend on.