If you are running a small business or a start-up, you may be worried about statutory accounts. But don’t worry, you aren’t the only one who is worried about it. Most small businesses find themselves stuck when it comes to statutory accounts. Usually, new businesses and start-ups have no idea about it.
Some hire Online Accountants in London for Statutory Accounts. While others try to file the statutory accounts by themselves. Whichever way you think is the best, we are going to inform you about it.
This article will provide you the basic information about both ways. You’ll know the basics of Statutory Accounts Services and how an online accountant can help you.
What Are Statutory Accounts?
Statutory accounts are a set of annual financial reports that companies have to prepare and file. Every private limited company has to prepare the statutory reports at the end of each financial year. These accounts report the financial performance and activity and can also be used to conclude corporation tax.
What Do Statutory Accounts Include?
If you are a private limited company, you have to file a set of financial reports. These include a profit and loss account, a balance sheet, cashflow statement and notes. You may also have to include an auditor’s report and a directors’ report depending on your company size.
You are also required to send copies of statutory accounts to:
- HM Revenue and Customs (HMRC)
- Companies House
- People who attend your company’s general meetings
How to Prepare Accounts by Yourself
Preparing statutory accounts is simpler for small companies as it requires less efforts. If your business comes under the category of a micro-entity or a small company, you don’t have to prepare a set of files. You don’t need an audit and can send simpler accounts to Companies House.
A. Small Company
A company is usually considered small if it fits the following conditions.
- Less than £10.2 million turnover
- A balance sheet of less than £5.1 million
- 50 or fewer employees
Your company will be considered a micro-entity if it fits two of the following conditions
- Less than £632,000 turnover
- A balance sheet of less than £316,000
- 10 or fewer employees
Do You Need an Online Accountant?
Although you can file statutory accounts by yourself, hiring an online account is a good idea. There are several professional Online Accountants in London that you can hire for this task. In this way, you can save yourself from the headache of handling the accounting duties. Hiring an online accountant will not only save time but also ensures that your files are managed professionally.
When You Have to file Statutory Accounts?
After registering with Companies House, you’ve to file your first accounts within 21 months’ duration. After that, a company is required to file the annual accounts 9 months after the financial year ends. Your company may have to pay fine if you file late. The amount of fine could vary and may be up to £1,500 depending on how long the delay is.