Year End Accounts
It’s important for anyone running a business to prepare year end accounts. It will give you a snapshot of how the business is doing. Is it making a profit / loss? How is it doing in comparison to last year?
For sole traders and partnerships they will form the basis of the business owners’ self assessment tax return. If you’re aiming to raise funds the lender will usually want to see year end accounts.
For companies it affects how much can be paid out in dividends. Under present regulation a company can’t pay out more in dividends than available profits from the current and prior years. A company must file annual accounts with Companies House within nine months of the financial year end. Filed accounts are available to view by the public and many suppliers will scrutinise them when deciding on offering credit terms.
All too often owners are focused on business related matters and accounting / bookkeeping is not a priority. As a result preparing year end accounts becomes difficult /stressful. To add to the difficulty accounts need to be prepared in line with accounting standards and owners may not have the expertise. Many companies leave it to their accountants.
We work with your accountant by ensuring the bookkeeping is up to date and the transactions are posted correctly. Your accountant benefits in that they will not need to spend so much time on bookkeeping. That could reduce your accountancy costs.
For self employed / freelancers we can produce the year end accounts. Contact us to see how we can help.
Preparation and filing with the companies house is not an easy task. Many small business owners view this as a tedious and a time consuming task. This is mainly berceuse the business owners are more occupied on the business related matters rather than, accounting, bookkeeping and final accounts preparation.
However, when it comes to the year end every business must file final accounts that will show the real figures of the business. It will show as to how the business has performed over the concerned period of time. The final accounts needs to be prepared carefully paying attention to the accounting standards that govern the subject of accounting. For this purpose they need the help of a professionally qualified accountant.
The factors that will determine the accountant’s preparation of final accounts for a business depends on factors like the scale of the business operation. the trading record of the business, company’s tax obligationsetc. Please make sure to select a professional accountant to help you with the VAT Returns, preparation of final accounts, filing with the HMRC and Companies House.