A Guide To Year-End Accounts

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 hello@bkplus.co.uk