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Statutory Accounts and Accounts Preparation
Statutory Accounts and Accounts Preparation
Statutory accounts, also known as annual accounts or financial statements, are required to be submitted to Companies House by all Limited Companies (“Limited” or “Ltd”), Public Limited Companies (“PLCs”), and Limited Liability Partnerships (“LLPs”) at every year-end.
They are reports that showcase everything your company owns, owes and is owed (balance sheet) as well as your turnover, costs and profitability (profit and loss account) over the financial year.
What are statutory accounts?
Limited companies must produce statutory accounts (annual accounts) every financial year. The level of detail isn’t granular, so it won’t include individual invoices or pay to specific individual(s).
This applies to all limited companies, whether your trading, non-trading or dormant you’re required to submit.
Companies House
HM Revenue and Customs (HMRC) as part of your Company Tax Return
Limited company shareholders
People who can go to the company’s general meetings
The annual accounts are set out in a specific format, defined by the Companies Act, so that they can be published on public record.
What is included in statutory annual accounts?
The information that your company is required to submit to Companies House varies depending on the size of your business.
Irrespective of your size, they must include:
‘Balance sheet’ – total value of its assets (what the company owns and is owed), total value of its liabilities (what the company owes)
‘Profit and loss account’ – Income, expenditure and resulting profits of the company
Notes about the accounts – Providing more details of the figures above
A director’s report (unless you’re a ‘micro-entity’)
Small and medium businesses don’t usually have to have an audit, however, please check the government’s advice on audit exemption for private limited companies.
