Statutory Accounts

Financial accounts
Financial accounts are a historical record of your business' performance over a past period - usually one year - for the benefit of external users such as shareholders, employees, suppliers, bankers and authorities.

Financial accounts normally include the following elements:

Profit and loss account
This measures your business' performance over a given period of time, usually one year.
It compares the income of your business against the cost of goods or services and expenses incurred in earning that revenue

Balance sheet
This is a snapshot of your business' assets (what you own or are owed) and your liabilities (what you owe) on a particular day - e.g. the last day of your financial year.

Filing financial accounts
Limited companies are obliged by law to prepare a set of financial accounts each year and publish them by filing a copy with Companies House.
There are statutory penalties for late or incorrect filing, for which the directors are liable.

Find information about late filing penalties on the Companies House website

A company that is dormant since its incorporation or has not been traded may file dormant accounts to Companies House. You can file the accounts soon after the year end or together with your company annual return so that you can eliminate one thing from your to do list.

Abbreviated Accounts
Small and medium-sized companies may file abbreviated accounts at Companies House. Abbreviated accounts put less information for public record.

The abbreviated accounts for small company are less detailed. The accounts must contain abbreviated balance sheet and notes to the abbreviated accounts.

Medium-sized companies must send more information to Companies House but they need not disclose turnover, other operating income or cost of sales. However, for accounts periods commencing on or after 6 April 2008 they must disclose turnover.
Both small and medium-sized companies must send full accounts to their shareholders.

Small and Medium Sized Company Criteria
In order to be eligible to file abbreviated accounts to Companies House, your company must meet the following criteria:

All other companies are classified as large and not entitled to exemptions.

If you require help in preparing your company accounts, you are welcome to speak to one of our accountants; they will provide you with the best priced accounting package.

Please contact us to find out more.