Limited Company Accounts

Every limited company is required to prepare financial statements on an annual basis; most of us refer to these as annual or year-end accounts. These accounts are used by a number of individuals and organisations who have an interest in the financial affairs of a company. These include:

HM Revenue and Customs

A copy of the financial statements is required by HRMC, when the annual Corporation Tax Return is submitted.

Companies House

Within nine months of the accounting period end, a copy of the financial statements needs to be filed with the registrar of companies. Small companies may be able to take advantage of rules allowing for abbreviated accounts to be followed. These will disclose substantially less information than the normal full of financial statements, notably the turnover and the whole of the profit and loss does not need to be disclosed.

Shareholders

These are the owners of the business, who through their financial investment will have an interest in the performance of the company. In many instances the shareholders of a company are also the directors.

Banks other lenders of finance

When applying for finance typically a bank will want to see current and also historical financial data on a company. Once loans have been approved, the banks will be keen to see that the company is in a position to repay its loans.

Other interested parties and lenders of finance

Customers will be very keen to ensure that your business is stable to ensure that they will be able to rely on the services and products you offer. If they are businesses themselves your business will may be critical to the products and services they offer.

Suppliers to a company may also be interested in the financial viability of a company before entering into business contracts, often they will be important lenders to your business by giving you an account, they will need information to set credit limits and payment terms.

Josef E Zbaraski FCCA Ltd will ensure that your annual accounts are fully compliant with all Companies Act requirements and that generally accepted accounting practises are followed in their preparation. Where applicable, we will be happy to advise where the advantage of being able to file abbreviated accounts with companies house can be taken.