Preparing your statutory accounts
Your statutory account report must include:
- Balance sheet and a profit loss statement. A balance sheet is a financial statement that includes money the company owns or owes at the end of the financial year. It must also be signed by the director of the company.
- A profit and loss statement that shows the total profit or loss a company has made in the given time.
- You might also need additional reports from a director unless you are a micro-entity or reports from an auditor depending on the size of your company.
Statutory accounts for small businesses
Some small companies are exempted from filing full statutory accounts instead they can file or send abridged accounts. The companies that can file abridged accounts are dormant, small companies, and micro-entities.
Your company is small if your turnover is less than £10.2 million, it has £5.1 million or less on its balance sheet and has 50 or fewer employees. If your business comes under the small companies’ category, you can:
- choose exemption from audits
- decide whether to or not to send turnover accounts
- decide whether to or not to send a copy of the director’s report to companies’ house
Micro entities are very small companies. Your business qualifies for a micro-entity if you have a turnover of £632,000 or less, you have £316,000 or less on the company’s balance sheet, and you have 10 or fewer employees. If your business comes under the micro-entities category, you can:
- make simpler accounts
- send balance sheets with minimal information to Companies House
- and all other exemptions that are given to the small businesses also apply to you
The company having no significant transactions in the financial year is called dormant. Significant transaction does not include; money paid for shares when the company was incorporated, filing fees paid to Companies House, and penalties for late filing accounts. Dormant companies qualify for the same exemptions as to small businesses.
Penalties for late filing
You can face penalties if you fail to file your accounts with Companies House by the deadline. On failure to file accounts on time, you will automatically get a penalty notice. Penalties are doubled if your accounts are late for 2 years in a row.
For private limited companies, the penalties are
|For up to 1 month||£150|
|For 1 to 3 months late||£375|
|For 3 to 6 months late||£750|
|For more than 6months||£1,500|
Different penalties may apply to public limited companies.
How can we help?
Statutory accounts are not mere legality but an important aspect of your business’s yearly evaluation. Statutory accounts determine how well your business is running and whether you can achieve your desired goals in a set time.
The facts and figures put together in your statutory accounts are crucial for understanding the company’s progress. These facts and figures can be stressful especially, for growing businesses and freelance workers. Financial firms are focused on past financial mistakes rather than on providing future directions, while they offer minimum communication to their clients. Unlike other statutory account services, we keep regular checks with our clients while directing you towards the future by molding your finances as per your goals.
If you would like more information regarding this, get in touch with us on 0113 436 0002 or use the form below.