Limited Company Accounts

Statutory accounts, also known as annual accounts, are financial reports that a limited company is legally required to prepare at the end of each financial year. These accounts give a summary of the company's financial activity over the year and are used by shareholders, HM Revenue & Customs (HMRC), and Companies House.

Filing Requirements:

Small companies (meeting at least two of the following criteria: turnover of £10.2 million or less, balance sheet total of £5.1 million or less, 50 employees or fewer) can file simpler, abbreviated accounts.
Micro-entities (turnover of £632,000 or less, £316,000 or less on the balance sheet, and 10 employees or fewer) have even more simplified reporting options.
Large companies must prepare full statutory accounts.

Filing Deadlines:

For Companies House: The accounts must be filed within 9 months of the company’s financial year-end.
For HMRC: They must be submitted with the company’s Corporation Tax Return, within 12 months of the financial year-end.
Failure to file statutory accounts on time can result in penalties.

Management Accounts :

Management accounts for a limited company are financial reports produced periodically (usually monthly or quarterly) to provide detailed insights into the company’s financial performance and position. Unlike statutory accounts, which are prepared annually and must comply with legal requirements, management accounts are for internal use and can be tailored to meet the needs of the company’s management team.

Importance of Management Accounts:

Decision Making: Provides timely and relevant financial data that helps management make informed decisions.
Performance Monitoring: Tracks the company’s financial health, identifying trends, opportunities, and potential issues.
Cash Flow Management: Helps in managing liquidity by monitoring cash flow and planning for shortfalls or surpluses.
Strategic Planning: Aids in setting financial goals, allocating resources, and evaluating the financial impact of strategic initiatives.

Management accounts are vital for the ongoing financial health of a limited company, providing the insights necessary to navigate the business environment effectively.

We can help you to prepare and submission of company’s annual accounts to companies house & HM Revenue & Customs to meet your statutory duties . Please contact us for further details.