WELCOME TO THE NEW ERA OF ACCOUNTING
Statutory accounts are an annual report that must be completed at the end of the financial year to show your company’s activities to HMRC, Companies House, and your shareholders.
Failure to submit your company’s statutory accounts before the deadline will result in fines of up to £1500 if filed 6+ months late.
Your company’s statutory accounts must include the following documents-
We explain each of these terms briefly in the coming tabs.
Your company’s balance sheet shows exactly what your company owns, as well as what you owe up until the last day of the financial year.
The most important figures on your company’s balance sheet that will be of interest to your shareholders is the money available to your company in comparison to what you owe.
The profit and loss account summarises your company’s net profit or loss for the financial year.
This document includes your revenue (what your company has earned) and expenses.
Based on these figures, it is worked out whether your company is able to manage its finances and generate profit, or make a loss.
Your cash flow statement details the flow of cash within your company; the amount coming in and going out.
On the basis of this information, it becomes clear how well or not so well your company is managing its finances much like the profit and loss account.
The director’s report names the director of your company and provides a report on the future of the company based on their finances.
In other words, a director’s report is essentially a reflection on the past financial year and a projection of the financial year ahead.
The notes on your statutory accounts provide further context and details into your company’s figures throughout the documents if necessary.
Keywords – Statutory Accounts – Statutory Accountants