Annual Accounts

What You Need To Know About Annual Accounts

If you already own your own business, you might be familiar with the annual accounts that your business is required to submit to Companies House each year. If you are only getting started on your business, you may be wondering what it is all about. Either way, annual accounts submissions can be a stressful time for business owners as the information included must be accurate and comprehensive. Additionally, there are deadlines to adhere to which if missed, will result in penalties.

Accounts Fortress can help your business with our small business accounting services, to ensure that your annual accounts are submitted correctly and on time. Having an experienced small business accountant on your team will make all of the difference when it comes to submission season for your company. There simply is no need to scramble frantically looking for information and to stress yourself out because of your annual accounts!

A Closer Look At Your Annual Accounts

As a brief overview, annual accounts are also referred to as statutory accounts or financial statements. The accounts essentially provide an overview of your company's financial activity for that year. As a side note, the information contained in this report is also used to prepare your tax returns for HMRC. Thus, it is important that the information is comprehensive and accurate. Essentially, the annual accounts will contain a balance sheet, profit and loss report, a director’s report and an audit report, unless the company is exempt. Generally, the report will also feature notes about the accounts, along with the directors’ name and signature on the balance sheet.

Every annual account must be submitted to Companies House 9 months after your business’s financial year ends. Additionally, it is your responsibility that each shareholder receives a copy of the annual account. It is also important to note that only companies that are classified as dormant or “small” are liable to submit a shortened version of the annual accounts.

The Contents Of An Annual Account

Compiling a balance sheet gives an insight into the financial well being of your organisation. It can be referred to as a snapshot at the time it was compiled of all your business’s assets, liabilities, and the shareholder’s equity. The assets side of the balance sheet will show fixed assets, which are kept long term such as property, factories, vehicles, etc. Additionally, it will show current assets, which have shorter life spans like stock items, petty cash and cash in the bank. Similarly, the liabilities will feature fixed and current liabilities. 

Long term liabilities are generally money that can’t be repaid within a year, whereas current liabilities can be paid within a year. This information gives an indication into how the business has spent money. Furthermore, the balance sheet will differ from the profit and loss statement in the sense that the balance sheet looks at things as they are at a certain point. Profit and loss records transactions for the financial year period.

Stress Free Annual Accounts For Small Businesses

Your profit and loss statement needs to display all sales and losses for the period in order to determine the company's gross profit. The turnover figure, which is the total of your sales, must be compared to the money spent creating products or delivering service. You will also need to take administrative costs involved into account to accurately determine profit. Accounts Fortress are the trusted and experienced bookkeepers and  small business accountants. You no longer have to wonder who are the best accountants near me? Our expertise means that your annual accounts run smoothly, all throughout the year.

Our smart bookkeeping services will make sure that your daily bookkeeping will ensure that come time for annual accounts, you are sorted. Let Accounts Fortress take the stress out of your annual accounts, allowing you to focus on what you are good at, growing your business! We also offer business start up accounting and  professional tax accounting services in order to make sure you are both tax efficient and tax compliant. Get in touch with us today to find out how we can help your small business.