Year end accounts

Your financial year should end with more than a set of figures and another filing deadline. Properly prepared accounts should show what happened within your business, explain your tax position and help you make better decisions for the year ahead.

Asmat & Co Accountants prepares clear and accurate year end accounts for limited companies, partnerships, LLPs, sole traders and other UK businesses. We review your records carefully, complete the necessary adjustments and explain the finished accounts in straightforward language.

You receive practical support from an experienced accountancy team, not simply a set of documents to approve without understanding them.

Clear accounts prepared around your business

Every business has a different financial story. Your accounts may involve unpaid customer invoices, equipment purchases, stock, payroll, VAT, director withdrawals, business loans or income received in advance.

These details need to be handled correctly before your final figures can be produced. We take time to understand how your business operates and investigate anything that appears incomplete, inconsistent or unusual.

Our work is designed to help you:

• Meet your Companies House and HMRC responsibilities
• Understand whether your business made a profit or loss
• Calculate the tax that may be due
• Identify bookkeeping errors or missing transactions
• Review outstanding debts and business liabilities
• Understand cash flow and financial performance
• Plan more confidently for the next accounting period

The result is a reliable set of accounts that reflects your business and gives you useful information rather than unexplained numbers.

What is included in our year end service?

The exact work required will depend on your business structure, reporting obligations and the quality of your financial records. Our service can include the following areas.

Review of your accounting records

Before preparing your accounts, we review the records supporting your figures. This may include your bank transactions, sales invoices, supplier bills, expense receipts, payroll records, VAT returns and previous accounts.

We look for duplicated transactions, missing information, unreconciled balances and expenses that may have been entered incorrectly. Businesses that need ongoing help organising these records can also use our bookkeeping services.

Bank and balance sheet reconciliations

Balances shown in your accounting system should agree with your bank statements and supporting records. We reconcile relevant accounts and investigate differences before finalising your figures.

This process may cover:

• Business bank and savings accounts
• Credit cards and payment platforms
• Customer and supplier balances
• VAT and payroll liabilities
• Loans and hire purchase agreements
• Director’s loan accounts
• Fixed assets and depreciation
• Stock and work in progress

These checks help reduce the risk of inaccurate accounts, unexpected tax issues and errors being carried into the following year.

Year-end accounting adjustments

Some income and costs need to be included in a different period from the date on which money was received or paid. We assess whether adjustments are required for accruals, prepayments, depreciation, stock, bad debts, deferred income and other year-end matters.

We also review whether expenses have been treated appropriately for accounting and tax purposes. Where an item needs a different tax treatment, we explain the reason clearly.

Preparation of annual accounts

For a limited company, statutory accounts will normally include a balance sheet, a profit and loss account and supporting notes. Other statements or reports may be required depending on the company’s size, structure and reporting framework.

The balance sheet shows what the business owns and owes at the end of the financial year. The profit and loss account summarises income, operating costs and the resulting profit or loss over the period.

Our limited company accountants can manage your wider accounting responsibilities alongside the annual preparation process.

Corporation Tax calculations and return preparation

Your accounting profit is not always the same as your taxable profit. Certain expenses may be disallowed for Corporation Tax, while capital allowances and other reliefs could reduce the taxable amount.

We prepare the relevant tax calculations, identify appropriate claims and confirm how much Corporation Tax is expected to be payable. Our wider Corporation Tax services can also help with returns, tax planning and HMRC correspondence.

Filing support

Once the accounts have been prepared, we send them to you for review and approval. We explain the important figures and answer your questions before anything is submitted.

Where included within your service, we file the approved accounts and relevant returns with Companies House and HMRC using the appropriate filing method.

Who needs year-end accounting support?

Our service is suitable for businesses at different stages, from newly incorporated companies preparing their first accounts to established organisations with more complex financial records.

Limited companies

Every UK-registered limited company is normally required to prepare annual accounts, including companies that are dormant or have not traded during the period.

Your accounts must follow the relevant reporting rules and be approved by a director before submission. The directors remain legally responsible for making sure the company’s records and filings are accurate, even when an accountant prepares them.

Partnerships and LLPs

Partnerships need reliable accounts to calculate each partner’s share of the business profit and support the relevant partnership and personal tax returns.

LLPs also have Companies House reporting responsibilities. We can help organise the figures, prepare the necessary accounts and clarify what information each member may need for their own tax affairs.

Sole traders

Sole traders do not submit statutory company accounts to Companies House. However, annual accounts remain valuable for completing an accurate Self Assessment return and understanding how the business has performed.

Well-prepared figures can also support applications for mortgages, loans, leases or other forms of finance.

Contractors, landlords and growing businesses

Your accounting requirements may become more complicated as your income increases, you register for VAT, employ staff, purchase assets or operate through multiple income streams.

We review the wider position rather than treating each filing in isolation. This helps us identify areas that need attention before they become more difficult or expensive to correct.

What information will you need to provide?

Providing complete records early gives your accountant more time to investigate issues, discuss tax planning and complete the work before the deadline.

Depending on your circumstances, we may ask for:

• Business bank and credit card statements
• Sales invoices and income records
• Supplier bills and expense receipts
• Details of stock held at the year end
• Payroll reports and pension information
• VAT returns and supporting calculations
• Loan, finance and hire purchase statements
• Details of equipment, vehicles or other assets purchased
• Information about money introduced or withdrawn by directors
• Details of unpaid customer invoices and supplier bills
• Details of grants, insurance proceeds or unusual transactions
• Access to your bookkeeping software
• Previous accounts and tax returns if you are changing accountant

We provide a clear list based on your business, so you are not left trying to work out what is relevant.

Important deadlines for limited companies

Your accounting year end and filing deadline are not usually the same date. Knowing the difference helps you plan properly and avoid last-minute problems.

For an established private limited company, the usual deadlines are:

• Annual accounts filed with Companies House within 9 months of the financial year end
• Corporation Tax paid within 9 months and 1 day of the end of the Corporation Tax accounting period
• Company Tax Return filed with HMRC within 12 months of the end of the accounting period

A newly incorporated private company will normally need to file its first accounts with Companies House within 21 months of its registration date.

Your exact dates can differ if you have changed your accounting reference date, shortened or extended an accounting period, restarted a dormant company or have an accounting period longer than 12 months.

We confirm the deadlines relevant to your business rather than relying on general dates.

What happens if company accounts are filed late?

Companies House automatically issues penalties when company accounts arrive after the filing deadline.

The current penalties for a private limited company are:

• Up to 1 month late: £150
• Between 1 and 3 months late: £375
• Between 3 and 6 months late: £750
• More than 6 months late: £1,500

The penalty is normally doubled when accounts are filed late in 2 consecutive financial years. Continued failure to submit accounts may also place the company and its directors at risk of further enforcement action.

Leaving the work until the final few days can also mean there is no time to find missing records, correct bookkeeping problems or discuss legitimate tax planning opportunities.

Our year-end accounts process

We use a clear process so you always understand what is happening and what is required from you.

1. We confirm your responsibilities

We check your business structure, accounting period, Companies House deadline and relevant tax dates. We also establish what services are required and whether any previous submissions or records need attention.

2. We collect your records

You receive a clear request for the documents and information needed. Where appropriate, we can obtain access to your accounting software or liaise with your previous accountant.

3. We review the figures

Our team checks the bookkeeping, reconciles key balances and raises focused questions where information is missing or unclear.

We do not make assumptions about unusual transactions without discussing them with you.

4. We prepare your accounts and tax calculations

Once the records are complete, we prepare the accounts and any agreed tax computations or returns. We apply the accounting and tax treatment appropriate to your circumstances.

5. We explain the results

You receive an explanation of the key figures, including profit, tax, business assets, liabilities and any matters that may need attention.

Where more regular insight would help you manage the business, our financial reporting services can provide monthly or quarterly information rather than waiting until the end of the year.

6. You approve the accounts

We give you the opportunity to review the documents and ask questions. The accounts are only submitted after the necessary approval has been received.

7. We complete the agreed filings

We submit the approved accounts and returns covered by your service and confirm when the filings have been completed.

Use your accounts to plan the next year

Annual accounts look backwards, but the information should also help you look ahead.

A year-end review can reveal that your sales increased while margins fell, customers are taking longer to pay, overheads are rising or too much money is tied up in stock. It may also show that the business has funds available for investment or that tax payments need to be included in future cash flow planning.

We help you consider practical questions such as:

• Is the business becoming more profitable?
• Are your costs rising faster than your income?
• Can the business comfortably meet upcoming tax payments?
• Are customers paying within agreed terms?
• Does your pricing still cover your costs?
• Are director withdrawals creating an overdrawn loan account?
• Would more regular reporting improve your decisions?
• Are there actions to consider before the next year end?

This turns the annual accounting process into a useful business review rather than a once-a-year compliance exercise.

Why choose Asmat & Co Accountants?

Asmat & Co Accountants was established in 2007 and has developed a team that includes professionally qualified ACCA, CIMA and IFA members. The firm also acts as an HMRC agent and Companies House filing agent.

Our experience covers limited companies, sole traders, partnerships, LLPs, contractors, landlords and growing businesses across a wide range of sectors.

When you work with us, you can expect:

• A careful review of your financial information
• Clear explanations without unnecessary technical language
• Practical advice based on your actual figures
• Transparent fees agreed for the required work
• Support with Companies House and HMRC responsibilities
• A team you can contact when you have questions
• Accounting support that can grow with your business

We aim to identify issues early, communicate clearly and provide accounts that you can understand and use.

Need help with your next accounting year end?

Whether your deadline is approaching, your records need organising or you are considering changing accountant, contact our team to discuss your year-end requirements and receive clear guidance on the next steps.

Frequently asked questions

What are year end accounts?

Year end accounts summarise a business’s financial activity over its accounting period. They normally show income, expenses, profit or loss, assets and liabilities.

For limited companies, the statutory accounts submitted to Companies House usually include a balance sheet, profit and loss account and supporting notes. Additional reports may be required depending on the company’s size and reporting obligations.

How long does it take an accountant to prepare annual accounts?

The time required depends on the size of the business, the volume of transactions and the condition of the bookkeeping records.

Accounts can usually be completed more efficiently when bank accounts have been reconciled and invoices, receipts, payroll information and loan statements are readily available. Missing records or unexplained balances may extend the process, so it is sensible to provide your information well before the filing deadline.

Can I prepare my own limited company accounts?

A company director can prepare and submit the company’s accounts without appointing an accountant. However, the accounts must still comply with company law, the relevant accounting standards and Companies House filing requirements.

Using an experienced accountant can reduce the risk of incorrect classifications, missing disclosures, inaccurate tax calculations and filing errors. It also gives you an opportunity to ask questions and understand what the figures mean for your business.

What is the difference between annual accounts and management accounts?

Annual accounts are normally prepared after the financial year end and are used to meet statutory and tax reporting requirements. They provide a summary of the completed accounting period.

Management accounts are prepared during the year, often monthly or quarterly. They are mainly used internally to monitor profit, cash flow, costs and performance, helping business owners make decisions before the annual accounts are due.

Do dormant companies still have to file annual accounts?

Yes. A UK-registered limited company generally needs to file accounts with Companies House even when it is dormant and has not traded.

The type of accounts required may be simpler, but the filing deadline still applies. A company may also need to tell HMRC that it is dormant for Corporation Tax purposes, depending on its circumstances.