Annual account preparing is a pertinent task, which a registered company in England must undertake. The same if not timely managed, might imply fines followed by even severe legal implications. With the relevance of annual account preparing, appropriately highlighted, it is now reasonable to outline the salient features.

Annual account preparing: Key highlights

• The standard format, as defined in the Companies Act, ought to be followed while preparing accounts. This implies compliance with all headings and sub headings in the outlined format. Moreover, the account statements should also be in line with the UK accounting standards. The key idea is to generate a ‘true and fair view’ of the activities. 

   

• Annual account preparing would entail catering to four key sections viz., Report of the Directors, Balance Sheet, Profit & Loss Account and Notes.

   

• More specific account requirements would vary with the company size. For instance, smaller companies would be needed to prepare statements like PAYE records, VAT records, etc., while larger ones would also require Sale, Purchase Ledgers, etc.

   

• The accounts ought to be submitted within 12 months, however considering tax is to be paid within 9 months, the preparation typically happens by then.

   

• The accounts are submitted with HMRC (HM Revenue & Customs) and made publicly available by filling with Companies House.

   

• The information as presented post annual account preparing serves as an important input for Company’s Tax return calculations and therefore deserves special attention. Incomplete / missing information might unnecessary generate enquiries from authorities.  

   

If the stated and various other aspects of annual account preparing seem to much a task to undertake, contact Novik & Co., and eradicate all annual account preparing related issues. For a small fee, the voluminous troubles of possible discrepancy would be eliminated.