Statutory Accounts

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.

 

Why Choose DS Burge & Co?

At DS Burge & Co, our team of accountants are experts at helping business prepare and submit your documents to Companies House, ensuring they are filed correctly and filed on time so you avoid any penalties.

As part of our annual accounts preparation service, we don’t just submit them to Companies House on your behalf, we also help you better understand your company’s finances. We can also combine your statutory accounts filing with your Corporation Tax Return submission so know what to save up for your tax bill and can adjust your cash-flow accordingly.

From cash-flow to profit, we want to help you grow, and so we offer each and every customer a friendly, flexible and professional service customised to their individual needs.

 

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.

They are used to report your company’s financial information, and should be send to:

  • 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.

 

When do your statutory accounts need to be filed with Companies House?

The deadline for submission of your first set of statutory accounts is 21 months after you first incorporate your limited company. After this you are then required to submit your statutory accounts annually within 9 months after your company’s year-end.

Please note these annual accounts are different to your confirmation statement. The company’s confirmation statement is due after the company’s first year since its incorporation (your company’s first year-end) and once a year after that. The first set of statutory accounts are then due another 9 months after this period – 21 one months in total.

The deadline for these statutory accounts and your tax return are also different, however we find most businesses want us to file them at the same time to simplify the process.

 

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 governments advice on audit exemption for private limited companies.

 

How to prepare statutory accounts?

Statutory accounts are prepared in a fairly generic format to make them easier to understand and compare.

Popular accounting software can help speed up the process of preparing your annual accounts, but as you’re legally responsible for the information submitted, we’d always recommend speaking to us first.

 

What is the difference between management accounts and statutory accounts?

Management accounts are different to statutory accounts as they are financial reports used internally to help business owners and senior managers make strategic decisions on a day-to-day basis.

Typically, they are produced on a weekly, monthly or quarterly basis and provide a deep level of insight into the business against various key performance indicators (KPIs).

Statutory accounts, as already discussed, have to include at minimum key financial information, and are required to be formatted in a specific way for public consumption. Management accounts are rarely shared outside of the business.