Final Accounts Services
From expert accountants based in London
Final Accounts are a snapshot of your entire years trading. Therefore, it forms a crucial step in understanding the areas of weakness and strength. It will also help you plan the following year in the form of a budget where you can focus on growing your business.
Final accounts are often referred to as ‘Statutory Accounts’. Legally, if your business is incorporated as private limited, statutory accounts need to be filed. Failure to do so are subject to penalties.
For these reasons, it is critical your final accounts are prepared with the utmost precision and care. We will work closely with you through the year to make sure your accounts comply with the accounting standards and meet your business needs.
FAQ about final accounts services
As the name suggests, final accounts are prepared at the end of your financial year. Every company has a set financial year, and it may vary depending on when you were incorporated. A financial year consists of twelve months, and so if you were incorporated on January 20, your financial year-end would usually be on this date.
Final accounts consist of essentially two financial reports. A profit and loss statement shows your years income and expenses, and a Balance sheet that will highlight your financial position at the end of the year consisting of assets, liabilities, and reserves.
Your final accounts will form the basis of your Statutory accounts. They would also require an accountant’s report and a director’s report, which highlights important information that might be of interest to the stakeholders of the business.
However, if you’re a small business or a micro-entity, an abridged version of the accounts can be submitted.
Abridged accounts are essentially a condensed version of your final accounts. They provide far less information about the company and have a brief version of the balance sheet. A statement of profit and loss is not required.
Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:
- A turnover of £632,000 or less
- £316,000 or less on its balance sheet
- 10 employees or less
Your company will be ‘small’ if it has any 2 of the following:
- A turnover of £10.2 million or less
- £5.1 million or less on its balance sheet
- 50 employees or less
Final accounts are submitted once at the end of the year. However, there could be instances where you might have to submit two sets of accounts. This can be when you have requested a change in your final account’s submission date, and the financial year has exceeded twelve months.
Yes. You can change your company’s accounting reference date as often as you like. However, if it lengthens the accounting period for over 12 months, then there are certain restrictions that apply. They are as following:
- If the company is in administration, the accounting reference date cannot be changed to longer than 18 months.
- Accounting periods cannot be extended more than once every 5 years unless you are in administration or have received consent from the secretary of state or you are trying to change the accounting reference date to align with the subsidiary or parent company.
An application (Form AA01) has to be sent to Company’s house before you reach the current filing deadline in order to have the accounting reference date changed.
If you are unsure of the procedure, make sure you Speak to our experts today to ensure you have all the knowledge to carry out this task. If you are still uncertain, we would be happy to do this for you. Please get in touch to discuss.
Yes. After you submit form AA01, the statutory accounting date is extended to 3 months from receipt of AA01.
An example of this can be:
Year-End accounting Date 30 June 2020. The filing date is 9 months, therefore falls on the 31 March 2021.
On 28 March 2021 form AA01 has been filed to shorten the accounting period by 1 day. AA01 has been accepted, and therefore the accounting period has now been pushed forward by 3 months to 29 June.
Even though the accounting period has been shortened by only 1 day, the statutory accounts filing date has been increased by 3 months.
- After your company is incorporated, you have 21 months to submit your accounts.
- Your second financial year of trading will require your company’s accounts to be submitted nine months after your company’s year-end.
|Time after the deadline||Penalty (for private limited companies)|
|Upto 1 month||£150|
|1 to 3 months||£375|
|3 to 6 months||£750|
|More than 6 months||£1,500|
Appropriate steps should be taken to ensure accounts are submitted on time. However, if there’s a special reason why the accounts might be filed late (Such as unforeseen event), there are options to apply for more time to file your accounts if your deadline has not passed.
If you haven’t traded since the day you were incorporated, your company is classified as ‘Dormant’. You are still required to submit statutory accounts; however, the submission process is fairly straight forward as there are no transactions.
As we are experts in this field, we will ensure all your accounts are compliant with the accounting standards and meet deadlines.
We will guide you along the way to ensure all your bookkeeping is accurate and all the data compiled shows a true picture of your overall trading to date.
If you are unsure of anything, please contact us for a free consultation, and we will be more than happy to assist you.