Every business has to prepare and file accounts to cater its statutory compliance needs. However, there are several other reasons why shareholders and directors must have precise and up-to-date information on accounts. After all, Cashflow and profit are the lifeblood of every business.
Mint Accountax can assist you in balancing the sheets for the most basic form of profit and loss accounts as well as highly bespoke management accounts. You can get assistance to manage your business and keep it healthy, whether you need financial projection or other forms of assessments (measuring, monitoring and reporting).
Generally, SME business clients start with a basic question of what type of accounts they should have and prepare.
The answer is very simple, all the companies must prepare full annual accounts for Companies House and HMRC. Though there are some exceptions for ‘small’ and dormant companies.
Most companies residing in the UK come under the category of small businesses as defined by the HMRC definition. A business is small if it satisfies 2 out of 3 following points:-
A business that falls under the definition of small companies must have to file an annual balance sheet signed by a director and supporting notes. Although there is a sub-category for smaller micro-businesses, the requirements are largely the same.
What are statutory accounts?
Statutory accounts are essential for your business and it helps you run the company accounts smoothly. It helps you keep your records updated with Companies House and shareholders can see how the company is performing.
Statutory accounts include several important figures of your business and most of the time are referred to as annual accounts. In addition, you could even get an idea about your competitors if you know what and where to look for such details.
Statutory accounts of a company must include cashflow statement, a profit and loss account, notes, a balance sheet and a directors’ report.
As a business, you have to file the first accounts within 21 months after you have registered the business with Companies House. After that, you have to submit it annually within nine months once your company’s financial year ends.
You may have to pay a fine up to £1,500 if you file late and the amount of fine depends on how long the delay is.
Stable and successful businesses that are well run tends to keep a close eye on their accounts and financials. However, getting your accounts prepared by a competent bookkeeper or accountant doesn’t mean you shouldn’t worry about them. If you want to run a healthy business, you must be aware of the figures that are put together by the accountant.
By this, we don’t mean that you should know how much you are earning and how much money is coming in. Although that’s a basic thing you must understand, there are several other factors as well.
Your company accounts can throw light on many other factors and measures. Aside from profit and loss, you can know about warning signs of future troubles, measures of efficiency and/or inefficiency or success.
We offer advice and training to you so that you can better understand the financial reports and concepts. Plus, we provide guidance regarding software that is commonly used to record information.
In the UK, small companies only have to file a balance sheet as a statutory obligation. However, without a profit and loss account, you can’t start working on a balance sheet.
This (Profit and Loss account) is nothing but a basic trading summary of your small business. It indicates how much you have spent running your company and how much has been sold.
Adjustments to final company accounts from profit and loss
You have to adjust the profit and loss statement in order to reflect other tax-related and/or financial aspects, which usually involves a Balance Sheet and Cash Flow statement.
In order to prepare and file your annual statutory accounts, our Accountants will need financial information shortly after the end of your tax year. This is something that our Business Consultants can help you with to ensure accurate collection of the data.
You can ask to prepare the financial data that we will collect from bank statements and original invoices. If you have already compiled it in excel files, our accountants are always happy to work with your own bookkeeping records.
Our accountant team can prepare statutory accounts draft within a week after, once the data is collected. You can also get an estimation of your corporation tax liability based on this data.
We help you build the payment into your cash flow model by tackling your account process after the financial year-end. Our accountant team calculates your corporation tax in the same time frame to ensure you get a better idea of your accounts.
Our Commercial Managers and Accounts team will provide you a detailed “Commercial Insight” report as soon as your statutory accounts are completed. This insight report usually comprises of actionable commercial guidance that will help you improve growth and will increase your profitability.
Thus, we provide our clients a chance to identify and exploit competitive advantages and assist them in setting objectives and targets for the coming financial year.
If this is something that sounds interesting and tickles you, why not get an instant quote?