Year End Accounts – Limited Companies
The reporting requirements for a limited company can be quite daunting! If you are a limited company you are required to prepare a set of abbreviated accounts for Companies House, full financial statements for HMRC, a Corporation Tax calculation and file a CT600. You will also need to make an Annual Return to Companies House providing information about your company. There are a number of different deadlines for these returns and it can be a stressful time for company directors as there are severe penalties for late filing. M A Accountancy Services can provide a complete year-end service to ensure the process is as stress-free as possible.
Year end Accounts – Sole Traders
Although there is no legal requirement to file financial statements if you are a sole trader, the year-end accounts provide invaluable information about your business and are particularly useful if, for example, you wish to make a mortgage or business loan application.
Management accounts are a useful tool to assist managers in the decision making process. They are usually produced monthly or sometimes quarterly with the aim of helping managers make important business decisions, whilst having the benefit of full financial information. Current year performance can be measured against budget and last year's figures which provide a useful comparison and seasonal trends can be identified. Many small businesses rely solely on the end of year accounts to understand their financial situation and as a result may miss business opportunities or make poor decisions, simply because they did not have access to accurate, timely, financial information. Most businesses receive a Profit and Loss and Balance sheet relating to the previous accounting year from their accountants. This information is out-of-date and often some of the information is more than 18 months old.
Management accounts can help improve your business
- Businesses with commercial loans may be required contractually to provide management accounts on a quarterly basis.
- Regular management accounts allow you to keep a closer eye on your profit margin, trends in sales and your cash flow. If there is a problem, it is better to know about it sooner rather than later in order to take corrective action.
- Management accounts assist in the prediction of future events based on historical trend information. This may give you an edge over your competitors.