One of the most anticipated and most dreaded days of any business person is the year end time of preparing company accounts and filing of the returns annually. For businesses, this is an important time, the cost imposition and time away from conducting their business.
Preparing Company Accounts involves meeting legal requirements which include Filing annual accounts with Companies house, filing annual accounts to HMRC, filing corporation tax return and paying Corporation tax in a timely manner. The corporation tax return will become the benchmark for company’s tax calculations each year. When preparing company accounts the following statements must be present: Balance Sheet, A profit and loss account and Notes, the format of each statement is set out in The Companies Act.
Preparing Company Accounts can be complex and cumbersome process this is the reason majority of businesses ensure they engage management accountants for monthly or quarterly accounts, making the year end accounts preparation a bit easier. Without such regular and interim accounting information, a business could run into problems and the issues would not be noted till it gets out of control.
Preparing year end company accounts also gives an opportunity to draw a line under the year’s performance and make necessary changes for the forthcoming financial year.
Engaging good credible accountants for preparing company accounts and year end returns need not be an overhead as such but the advice should in it-self pay for the fees, represented by tax savings and other recommended cost savings.
As part of its regulatory accounts, each company has to report the accounts (costs, revenues, assets and liabilities) for the different activities it carries out in delivering services. This is known as accounting separation. Alongside its regulatory accounts and accounting separation information, we require each company to set out in a yearly statement how it has managed its risks and complied with relevant statutory and regulatory obligations (a ‘risk and compliance statement’). Each company also demonstrates how it has performed in the year by publishing a range of key indicators for its customers.