Preparing accurate accounts for yourself or business is mandatory and could come with penalties if not done properly to meet compliance. Verity Accountants are here to help you.
Regardless of the statutory compliance requirements for preparing and filing company accounts, Verity Accountants have unique expertise to prepare accounts for all types of business, from sole traders to partnerships and limited companies.
There are obvious reasons why Directors and Shareholders should want to have accurate and up-to-date accounts and information. Cashflow and profit are the essential to the life of every business. Our services will help to reduce the administrative burden on Directors, allowing you to concentrate on running your business, while giving you peace of mind that your accounts and returns are in order.
Our accounting and compliance services include:
- Preparation of annual or year-end accounts
- Preparation of periodic management accounts
- Bookkeeping services
- Maintaining PAYE and VAT records and associated returns
- Preparation for HMRC investigations
- PAYE and national insurance compliance
- Accounts software and IT
- Self-Assessment advice
Annual or Year End Accounts
Verity Accountants have the experience and expertise to assist you with the most basic form of profit and loss account and balance sheet through to highly bespoke management accounts, financial projection or other forms of measuring, monitoring and reporting of accounts to keep your business well managed.
We’re able to clarify for all our business clients the sort of accounts they have to prepare. The bottom-line is that all companies, with the exception of dormant and ‘small’ companies, must prepare full annual accounts every year for Companies House and HMRC.
In the UK, the vast majority of companies are small businesses according to the HMRC definition. That’s the large proportion of companies have satisfy 2 out of 3 of the following:
- Have a turnover of £10.2 million or less;
- Have £5.1 million or less on its balance sheet;
- 50 employees or less
Small companies now only need to annually file a balance sheet signed by a director and supporting notes. There is a further sub-category of small businesses which are classified as micro business. These businesses are smaller but the requirements are broadly similar.
Statutory accounts are important part of running your business. This type of accounts ensures that you keep your company’s records updated with Companies House to avoid the company being struck off.
Also, the statutory accounts ensures that your shareholders see how your company is performing. The statutory accounts should include a number of important figures such as a balance sheet, notes, a profit and loss account, cashflow statement and a directors’ report. We’ll provide detailed accounts which enable you to check up on how your competitors are doing. A company accounts. The first statutory accounts need to be filed 21 months after registration with Companies House. However, many business owners and Directors of companies tend to miss such important deadlines. That’s why, our Certified Chartered Accountants will ensure that you gather the correct information so that you can submit your accounts on time to avoid a fine of up to £1,500 depending on how long the delay is.
Understanding company accounts
Getting your accounts prepared by an accountant or bookkeeper is one thing but and another thing understanding the figures put together. As a Director or Business Owner, it is your responsibility to get the accounts completed in line with regulatory compliance. That’s why it’s important that Directors and Business Owners understand the figures and their implications on how well your businesses are running. Directors and Business owners of stable and successful businesses tend to keep a close watch on the financials and understand how much money is coming in and how much is going out.
Our expert Accountants will ensure that you do not receive just a basic profit and loss summary but a detailed company accounts that provides many other measures of success, efficiency and/or inefficiency or warning signs of trouble ahead. That’s why understanding your company accounts is so important.
At Verity Accountants, our working approach is to offer advice and training to all our clients in understanding accounting and financial concepts and reports and the software now generally used to record accounting information.
Profit & loss account
Even though the statutory responsibility for small companies is balance sheet only, it’s really possible to prepare a balance sheet without also having a profit and loss account first. A Profit and Loss account is a basic trading summary which expresses how much has been sold and how much has been spent running the company.
Our Accountants will make the necessary adjustment to the profit and loss statement to reflect other financial and/or tax related aspects which involves a Cash Flow statement and Balance Sheet. After the end of your tax year, our Business Consultants will help you collect the information that our Accountants need to prepare your annual statutory accounts. We can work with your own bookkeeping records (often in excel) or you might prefer us to prepare the data from original invoices and bank statements.
Draft year end accounts for approval
Once we have collected all the financial information required, our Accountants are usually able to produce a set of draft statutory accounts for your approval within a week, including calculating your corporation tax liability. By undertaking the accounts process soon after the financial year end and working through the corporation tax calculation in the same time frame, this allows you to budget for and build the payment into your cash flow model.
When the statutory accounts are complete and submitted, our Accountants will begin work on a “Business Growth Insight” report which aims to deliver commercial guidance intended to help increase profitability and growth.
Reviewing these conclusions provides our clients with the chance to identify and exploit competitive advantages and to set targets and objectives for the coming year.
Would you like to know more?
We offer initial free consultations. Please feel free to get in touch via email or our quick contact form below or to speak to an advisor phone T: +44(0) 203 643 5295.