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Statutory accounts and business accounts are of paramount importance in business management. They allow a company and its shareholders oversight of the financial well being of the company, it also provides an explanation of any profit or loss on that financial year and any growth that is forecast. Why are statutory accounts important? Statutory accounts, or the annual accounts of your company, are a legal requirement for all companies registered with companies house. These accounts are prepared using your companies financial records and are published annually, at the end of your companies financial year. Copies of your statutory accounts must be sent to the following. - any shareholders that you have - any person who are able to attend your company's general meetings - a copy must be sent to Companies House As part of your companies tax return you must send a copy to HM Revenue and Customs (HMRC) There are deadlines for which your statutory accounts have to be published, these may vary from when you send your tax return to HMRC. However, sometimes it is possible to do these at the same time. Statutory accounts must be completed and filed with HMRC within 21 months of your registration of your company with Companies House. Statutory accounts must then be filed annually, within 9 months of the end of the financial year for your company. It is important to note that failure to do so, or indeed filing the statutory accounts late could lead to a fine from HMRC, this fine can be up to £1500. What are statutory accounts? Statutory accounts, often called annual accounts by companies, show a breakdown of the companies finances that year. They show expenditure, profit and loss, and any income. When preparing statutory accounts you do not need to include every invoice or expenditure, just an overview of the finances of the company, its overall spending for that financial year. Statutory, or annual accounts are a very important to the running of your company. These must be sent to shareholders so they can see how profitable your business is. These accounts must also be filed with Companies house, failure to do so in the allotted time can lead to a fine. Statutory accounts follow a generic layout, this is a must as it has to be easy to understand for your shareholders. Moreover, certain key information must be shared. What are the key features of statutory accounts? Your statutory accounts must include: - balance sheet, this will show the value of the companies assets, or everything that it owned, anything the company owes out, and anything that company is owed by any third party. - profit and loss account, this will show the company's running costs, sales and any profits or any losses the company has accrued over that particular financial year. It will also include any deductions that have been made, for example payroll and taxes. - any further necessary notes about the accounts, which will provide explanation to expenditure and revenue of the company - it will also include a directors report - statutory accounts must be produced annually - All companies registered with Companies House are required by law to complete and publish their statutory accounts, and share it with HMRC and its shareholders, as well as any person who is allowed to attend general meetings. - If your company is small, it may not include a directors report if it is classed as a micro-entity, see our frequently asked questions to see if your business qualifies as this. If your company is not a small business, then you will have to include an auditors report. To see if your business qualifies as a small business see our frequently asked questions below. Company Accounts Successfully run business' are stable, they keep a close eye on their finances. This is not just the basics of revenue, but any losses and expenditures too. Whilst our accountants and bookkeepers can prepare these reports for you, sometimes it can be difficult to understand the figures on the paper. Company accounts can be really useful, they highlight profit and loss. Moreover they can highlight areas of your business that are going well and also areas that may be in trouble. This can allow you to plan contingencies in the case that an area identified is not performing as well as hoped. Our professional accountants offer guidance and support in understanding your annual reports and can highlight any trouble spots so that you can plan and adapt your business approaches to maximize profitability. If you are looking for that support why not contact us here. Do I need a profit and loss account? For small companies the statutory obligation is only the balance sheet, it is much easier to prepare a balance sheet if you have a profit and loss account. Profit and loss accounts provide a what is know as a basic trading summary. This will include all expenditure, for example how much goods or services have been sold and any further expenditure, for example wages. This will also include a Balance Sheet and a Cash Flow Statement which will also include tax related expenditure or other outgoings. This will in turn make changes to your profit and loss statement. Our professional accountants are on hand to help you prepare these at the end of your financial year. Do not worry what format you have done your bookkeeping in, whether it is in excel, or raw data from your bank statement or original invoices, they will be on hand to assist in the creation of these statements. What is a management account? Management accounts are usually reports produced for directors and any other personnel it is deemed necessary for them to have access to it. These allow directors and operational managers to make decisions by looking at the finances of the company. These can show trends in sales, so for example if something is not selling well it may be cut from what is offered. They may also show expenditure rises, so as a manager you can look at ways to reduce these costs. Management reports can be used to help retain a strong financial control over the business. Often these are not shared externally, for example with shareholders. However if the business is in financial crisis, or certain aspects are not performing well, they may be shared externally or with shareholders. A lot of companies will produce management accounts on a regular basis, weekly, monthly or quarterly as a way to assess and improve the business' financial standing. What are the Key Features of Management Accounts? - management accounts can include whatever information is decided or requested. Unlike Statutory Accounts there is no set way to do this and no set information that must be included. - It is up to the business to decide when the management accounts must be completed. Whether these are to be done quarterly, monthly, or weekly. - as it is not a legal requirement your business produces one, depending on the size of your business it may be that your company does not produce one at all. - when strategizing and choosing the direction of your company, management accounts are key. They offer insight into where he business is at financially, what areas are doing well and which areas not so well, so you can adapt and evolve your business model to adapt to the market and boost your business' profitability. Are there any differences between a statutory account and a management account? There are differences between these types of accounts, and knowing these can help a business owner utilize these tools effectively to ensure their business' financial success by enabling you to manage your business' finances effectively. - management accounts, are essentially the same as company accounts, and can be in any format you choose. Statutory accounts must follow the prescribed layout by HMRC. - management accounts are incredibly useful tools, and we would recommend that your business uses them so that you can adapt to market changes and have an insight into your business financial stability. However, there is no law stating that you must produce these, it is entirely up to you whether you do or not. Statutory accounts must be produced and shared with shareholders, Companies House and HMRC. - Statutory Accounts do not have to go into all the details of expenditure and revenue, merely stating how much profit and loss there was, and was expenditure and revenue there was. Management accounts go into much greater detail, providing insight into all the expenditure and revenues attained by your business. Statutory accounts allow you to see the overview of what your business has achieved each year. Management Accounts allow insight so you can focus your scrutiny of your business and improve your business model. - Both of these kinds of accounts can help you to keep an eye on the financial standing of your company. However, management accounts allow you to adapt to the market, make financial forecasts and make suitable changes to your business so that you can improve profitability. - Management accounts provide the raw data of the business, showing you a real picture of where your company is financially. It is not made to look good for HMRC. Statutory accounts are not allowed to mislead HMRC or investors, but they do not provide an in depth look into expenditure and revenue. If you feel you would like help or advice on any of these please contact us here. Frequently asked questions What is preparation of statutory accounts? Your statutory accounts are produced annually and show the financial records of your company for that financial year. These accounts show the expenditure and revenue of you company, any profits and losses. You must send copies of these to HMRC, Companies House, all Shareholders, any directors and anyone who is welcome at you companies general meetings. Can I prepare my own limited companies accounts? If your company is considered small, which means it has a turnover of less than £6.5 million per annum, you are able to send an abbreviated version of your accounts to Companies House. Although you will still have to provide the full version for your shareholders and HMRC. What is total exemption full accounts? Total Exemption Full - this term refers to medium or small business' filing full accounts. Total Exemption Small - this term refers to medium or small companies that file only the abbreviated accounts at companies house. Dormant - this refers to a company that is no longer actively trading and therefore has no accounting transactions. Can you file paper accounts at Companies House? Yes. Accounts can still be filed in paper at Companies House. However, it is highly recommended that you get them to Companies House before the deadline, because if they are rejected you will not have time to redo them and will incur a late submission fine. What is a Micro - Entity? A micro entity is considered to be a very small business. To be eligible to be classed a micro entity you must fill two fo the following criteria. -the turnover of your company must be £632,00 or less - your company has £316,000 or less on the balance sheet - your company has 10 employees or less. In the event your company is a micro-entity you are able to: - prepare and submit to companies house simpler accounts when completing your statutory accounts - you will be able to send Companies House only your balance sheet - you will also be entitled to the same exemptions as a small business What is a small company? For you to be eligible to register as a small business you must meet two of the following criteria: - your company must have a turnover of £10.2 million per annum or less - on the balance sheet your company must have £5.1 million or less - your company must have 50 employees or less. As a small business you do not need to file a full Statutory Account with Companies House. This means you only send a simpler balance sheet, with any notes to Companies House, this is call Abridged Accounts. There are some benefits to this, for example there will be less information about your company in the public domain. If your company is considered a small company you can: - apply for an exemption meaning that you will not have to be audited on your company accounts - decide whether or not you wish to send a copy of any directors reports or profit and loss accounts. What is the deadline for filing accounts with Companies House? Statutory accounts 21 months after registering your business with Companies House and 9 Months after the end of each financial year for your company.

Statutory accounts and business accounts are of paramount importance in business management.

They allow a company and it's shareholders oversight of the financial well being of the company, it also provides an explanation of any profit or loss on that financial year and any growth that is forecast.


Why are statutory accounts important?

Statutory accounts, or the annual accounts of your company, are a legal requirement for all companies registered with companies house. These accounts are prepared using your companies financial records and are published annually, at the end of your companies financial year.

Copies of your statutory accounts must be sent to the following.

  • Any shareholders that you have.
  • Any person who are able to attend your company's general meetings.
  • A copy must be sent to Companies House.

As part of your companies tax return you must send a copy to HM Revenue and Customs (HMRC).

There are deadlines for which your statutory accounts have to be published, these may vary from when you send your tax return to HMRC. However, sometimes it is possible to do these at the same time.

Statutory accounts must be completed and filed with HMRC within 21 months of your registration of your company with Companies House. Statutory accounts must then be filed annually, within 9 months of the end of the financial year for your company. It is important to note that failure to do so, or indeed filing the statutory accounts late could lead to a fine from HMRC, this fine can be up to £1500.


What are statutory accounts?

Statutory accounts, often called annual accounts by companies, show a breakdown of the companies finances that year. They show expenditure, profit and loss, and any income. When preparing statutory accounts you do not need to include every invoice or expenditure, just an overview of the finances of the company, its overall spending for that financial year.

Statutory, or annual accounts are a very important to the running of your company. These must be sent to shareholders so they can see how profitable your business is. These accounts must also be filed with Companies house, failure to do so in the allotted time can lead to a fine.

Statutory accounts follow a generic layout, this is a must as it has to be easy to understand for your shareholders. Moreover, certain key information must be shared.

What are the key features of statutory accounts?

Your statutory accounts must include:

  • Balance sheet, this will show the value of the companies assets, or everything that it owned, anything the company owes out, and anything that company is owed by any third party.
  • Profit and loss account, this will show the company's running costs, sales and any profits or any losses the company has accrued over that particular financial year. It will also include any deductions that have been made, for example payroll and taxes.
  • Any further necessary notes about the accounts, which will provide explanation to expenditure and revenue of the company.
  • It will also include a directors report.

Statutory accounts must be produced annually

All companies registered with Companies House are required by law to complete and publish their statutory accounts, and share it with HMRC and its shareholders, as well as any person who is allowed to attend general meetings.

If your company is small, it may not include a directors report if it is classed as a micro-entity, see our frequently asked questions to see if your business qualifies as this.

If your company is not a small business, then you will have to include an auditors report. To see if your business qualifies as a small business see our frequently asked questions below.

Frequently Asked Questions About Statutory Accounts


What is preparation of statutory accounts?

Your statutory accounts are produced annually and show the financial records of your company for that financial year.

These accounts show the expenditure and revenue of you company, any profits and losses.

You must send copies of these to HMRC, Companies House, all Shareholders, any directors and anyone who is welcome at your companies general meetings.

Can I prepare my own limited companies accounts?

If your company is considered small, which means it has a turnover of less than £6.5 million per annum, you are able to send an abbreviated version of your accounts to Companies House.

Although you will still have to provide the full version for your shareholders and HMRC.

What is total exemption full accounts?
  • Total Exemption Full - this term refers to medium or small business' filing full accounts.
  • Total Exemption Small - this term refers to medium or small companies that file only the abbreviated accounts at companies house.
  • Dormant - this refers to a company that is no longer actively trading and therefore has no accounting transactions.
Can you file paper accounts at Companies House?

Yes. Accounts can still be filed in paper at Companies House.

However, it is highly recommended that you get them to Companies House before the deadline, because if they are rejected you will not have time to redo them and will incur a late submission fine.

What is a micro-entity?

A micro entity is considered to be a very small business. To be eligible to be classed a micro entity you must fill two fo the following criteria.

  • The turnover of your company must be £632,00 or less.
  • Your company has £316,000 or less on the balance sheet.
  • Your company has 10 employees or less.

In the event your company is a micro-entity you are able to:


  • Prepare and submit to companies house simpler accounts when completing your statutory accounts.
  • You will be able to send Companies House only your balance sheet.
  • You will also be entitled to the same exemptions as a small business.
What is a small company?

For you to be eligible to register as a small business you must meet two of the following criteria:

  • Your company must have a turnover of £10.2 million per annum or less.
  • On the balance sheet your company must have £5.1 million or less.
  • Your company must have 50 employees or less.

As a small business you do not need to file a full Statutory Account with Companies House. This means you only send a simpler balance sheet, with any notes to Companies House, this is call Abridged Accounts.

There are some benefits to this, for example there will be less information about your company in the public domain.

If your company is considered a small company you can:

  • Apply for an exemption meaning that you will not have to be audited on your company accounts.
  • Decide whether or not you wish to send a copy of any directors reports or profit and loss accounts.
What's the deadline for filing accounts with Companies House?

The HMRC Deadline for filing Statutory accounts is 21 months after registering your business with Companies House and 9 Months after the end of each financial year for your company.

Are there any hidden charges for your service?

No. Our services to you are worked out on a fixed fee.

Charges for our services will be made clear to you before you decide to engage us to manage your books.

Why not contact our team now for a free quote from our accountancy team?

Do I need to VAT registered?

No. However, all business in the UK are legally obliged to register for VAT if your turnover is higher than the annual registration threshold.

In some cases, it can also be advisable to register for VAT as this yield other benefits for your business, we are happy to discuss what those may be with you.

Do I need to register for Pay as You Earn (PAYE) Payroll?

If your business has any employees at all you should enrol in the PAYE system.

Even if you are the only employee and act as both director and employee it's important that you have contacted HMRC and registered with the PAYE scheme and continue to make all RTI submissions.

Even if you only outsource your work, and so use sub-contractors, as you pay yourself you must be registered with this scheme.

Is accountancy and bookkeeping the same?

Bookkeeping put simply is keeping accurate financial records for a business.

The most notable difference between bookkeepers and accountants is that accountants are expected to analyse and interpret the data and provide ways in which you can save money, bookkeeping does not do this.

Do I need a bookkeeper if I have an accountant?

Accountants and bookkeepers do very different jobs in the businesses they work with.

Bookkeepers keep their client’s general ledgers up to date, which may include daily data compilation, ensuring accuracy in the accounts, ensuring the accounts are easy to understand and accessible by categorising it appropriately, and generating general financial statements.

Whereas accountants analyse the data, look for ways to save money in taxation, and prepare tax returns.

Should I outsource my accounts or hire a bookkeeper in house?

If you choose to hire a bookkeeper in house you will also have to become their employer, and this may not suit you as it will create more work.

As an employer you will have to pay their National Insurance and Taxes to HMRC. You will have to provide holiday and parental cover and produce their payslips.

If you choose to outsource to us then all this extra work will be taken away and placed with us, and our dedicated team will be able to take care of your accounts and work to ensure no errors are made.