What are year-end accounts?
Year-end accounts are the summary of all your business activities from twelve months.
This could include(depending on the size of the firm):
- Corporation Tax return
- Directors’ Report (a document that highlights a business’ performance over the year)
- Balance Sheet ( a document with a list of the company’s assets and liabilities)
- Profit and Loss Statement ( a document to summarises the revenue, cost, and expenses)
- Any footnotes
However, if the business is small enough they can apply for abbreviated year-end accounts.
Why do I need to complete year-end accounts?
Year-end accounts are a legal requirement for businesses to complete. They must be submitted to HMRC like your Corporation Tax return, within 12 months of the end of your company’s financial year.
Year-end accounts must also be submitted to Companies House within nine months of the end of your financial year.
When is the year-end?
The year-end is 12 months. It is common for many businesses to align this up with the financial year with the tax year (from the 6 April to 5 April the following year).
How to prepare for year-end accounts?
The year-end account is a summary of nearly all of your business activities from those twelve months, so being organised makes it easier. This includes:
- keeping track of income and expenditure records
- floating assets
- fixed assets
- company liabilities
- payroll information and more
With the use of technology, going paperless will help you to keep on track for the year-end accounts.
What are abbreviated year-end accounts?
Smaller businesses may submit ‘abbreviated year-end accounts’. They have met two of the requirements:
- less than 50 employees
- less than £10.2 million turnover
- less than £5.1 million on their balance sheet
Unlike year-end accounts, abbreviated year-end accounts only include a balance sheet, signed by one director.
If you need help with further understanding of year-end accounts, get in touch with us at firstname.lastname@example.org