Need to complete your annual accounts? Traynor Accounting Cumbernauld and Glasgow provides an annual accounts service for small and medium sized businesses throughout Scotland and the UK.
What are Annual Accounts?
Annual accounts, also known as statutory accounts or financial statements, are financial records that are prepared at the end of each financial year. Traynor Accounting can prepare your statutory accounts and file these with Companies House (if a limited company) on a timely basis each year. We also prepare annual accounts for the self employed as the basis for calculating your personal tax liability.
What is Included in Annual Accounts?
A balance sheet – this shows the financial status of the assets and liabilities of the company on the last day of the financial year
Profit and loss statement – this shows if the business has made a profit or loss and details the income and costs of the financial year
Notes about the accounts – this details the accounting policies and assumptions on how the accounts are being prepared and also gives more details of the assets and liabilities on the balance sheet
A director’s report – this is a statement by the director giving the company’s principal activities and any other information the director deems appropriate
An accountant’s report – this is a statement by the accountant declaring the basis that the accounts have been prepared
Why are Annual Accounts Important?
Annual accounts are important as their purpose is to report the financial performance of the business and are used to calculate the business tax. If you are a limited company, you are required by law to prepare annual accounts that must be filed with Companies House in a statutory format.
Audited Annual Accounts
If your annual turnover exceeds £10.2 million you are required to have your annual accounts audited. However, if your business meets the following criteria, you qualify for audit exemption:
Annual turnover £10.2 million or less
Balance sheet total of £5.1 million or less
Average number of employees 50 or less
Traynor Accounting Cumbernauld and Glasgow have taken the decision to concentrate on non-audit client services and therefore do not provide an audit service. However, we can prepare your statutory accounts for audit submission and arrange for a third party to provide your audit services, which we feel is a much more objective approach.
Deadline for Annual Accounts
The deadline for your annual accounts to be submitted to companies house is normally nine months after the end of the accounting period.
Please note in the first year of your company the deadline for submission will be nine months after the date the company was incorporated (which may be earlier than the end of the month).
If you miss the deadline you will have to pay a penalty.
The penalties for late submission of your private limited company annual accounts are as follows:
Not more than 1 month - £150
More than 1 month but not more than 3 months - £375
More than 3 months but not more than 6 months - £750
More than 6 months - £1,500
Benefits of getting Traynor Accounting to Complete your Annual Accounts
There are many benefits of getting Traynor Accounting Cumbernauld and Glasgow to complete your annual accounts. These include:
by getting us to complete your annual accounts you will have more time to focus on your core business needs
Our experienced accounting team will complete your annual accounts so you can relax knowing no mistakes will be made
You will never forgot vital information required for your annual accounts as we will get in touch well in advance to remind you of any information or payments that are required
We use Xero Accounting Software which is beneficial when completing your annual accounts. By having your records on Xero it allows us to have a better understanding of your tax liability due to Xero's forecasting tools prior to the bill arriving. We can help you to reduce your tax liability, which can result in your saving money!