Year End Accounts

Year End Accounts are also referred to as ’company accounts’, ‘statutory accounts’, or ‘financial statements’.

Your accounts will show your company’s financial activity over a set period - normally 12 months. They should contain comprehensive information about a company’s transactions, operating performance, and financial position at the end of its financial year.

Do you need an accountant to submit limited company accounts?

No, you don’t legally need an accountant, you can choose to complete your own accounts, which can include preparing and filing your accounts, your company tax return and other documents needed to be sent to Companies House after your company’s financial year end.

Your accounts will show your company’s financial activity over a set period - normally 12 months. They should contain comprehensive information about a company’s transactions, operating performance, and financial position at the end of its financial year.

However, be aware that preparing your accounts in the right way can be complex if you are not up to date with latest legislation and have not done this before. Getting it wrong could mean you incur penalties.

You should provide your company accounts to the following:

Small limited companies and micro entities are not usually required to prepare full accounts for Companies House. They can file abridged accounts (also known as abbreviated accounts) which are a much simpler summarised version of the full accounts.

The abridged accounts include the company balance sheet, a reduced number of notes to the accounts. They don’t need to include a profit and loss account.

A company is called ‘dormant’ by Companies House if it’s had no ‘significant accounting transactions’ during the accounting period. Even if your company is dormant, you must still file annual accounts and send Companies House confirmation statements every year.

You will need data about your company’s income, expenses, assets, liabilities and equity. Annual accounts should usually include:

If you’re company requires an audit (see criteria below), then you’ll also need an auditor’s report.
Most small companies qualify for an audit exemption and will not necessarily have to file full accounts if they have at least 2 of the following:

Accounting records your company must keep
You will need to keep up to date financial records to complete your annual accounts and company tax returns.

Below is a simple list of the financial records you need to keep:

Companies are legally required to keep all accounting records for a minimum of 6 years from the end of the financial year to which they relate.

Benefits of an accountant preparing your limited company statutory accounts

Accountants are experts in preparing and filing limited company accounts. It’s what they do every day, they will know all the rules, deadlines, tax reliefs, can liaise with HMRC and companies house on your behalf and meet very strict accounting standards.

Using an accountant will take away the stress of your statutory obligations as a business owner.

An accountant could help you avoid any penalties, ensure your company accounts meet rigorous rules and standards and may even save you money by advising on tax reliefs and things like expenses you can claim.

It’s important to understand that when hiring an accountant, as a company director you are still the person legally responsible for making sure your accounts are accurate. However, good certified accountants will ensure that based on the information you give them, that the accounts are prepared correctly and submitted to Companies House.

Annual accounts can be filed online at Companies House. They must be filed after the end of your company’s financial year, which is a 12-month period that ends on the ‘Accounting Reference Date’ (ARD).

Your first annual accounts normally have different deadlines to subsequent ones.

Your first annual accounts should be delivered to Companies House no later than 21 months after the date of company formation.

The period covered by your first accounts can be longer than 12 months because your first financial year will:

After your company’s first year accounts, the deadline for submitting annual accounts to Companies House is 9 months after the accounting reference date, which is the end of your company’s financial year.

Annual accounts should also be submitted to HMRC for your company tax return and no later than 12 months after the end of your ‘accounting period’ for Corporation Tax. This accounting period must not be longer than 12 months.

Whether you decide to undertake the responsibility of filing your own company accounts or you take our advice and hire an accountant, you need to be aware of your company’s accounting legal obligations and ensure that your business remains compliant.

Accountants are experts in accounts and tax legislation and are experts in business finance. They can generally, not only fulfil your statutory obligations but also offer support and advice that may end up saving you money.

Accountants can alleviate the burden and can save you time in preparing your own accounts.