What you need to know about year end accounts
Want to know more about year end accounts for limited companies? We take you through what you need to know.
What are year end accounts?
Year end accounts are also known as annual accounts or statutory accounts. They are a summary of your business performance across your financial year. These need to be prepared at the end of each financial year.
Completing and submitting year end accounts are a responsibility of running a limited company.
You need to share them with Companies House, HMRC as part of your Company Tax Return, your shareholders and anyone who attends your company general meetings.
Your annual accounts are what you use as part of the process for paying your Corporation Tax.
What to include in your annual accounts:
Your year end accounts should include:
- Balance sheet
- Profit and loss report
- Any notes on your accounts
- A directors report
If you are a ‘micro-entity’ you don’t need to submit a director’s report or an auditor’s report. A micro-entity is a company that fits 2 of the following criteria:
- 10 employees or less
- Turnover of £632,000 or less
- Balance sheet amount of £316,000 or less
What do you do with your year end accounts?
Year end accounts are submitted to HMRC as part of your Company Tax Return before you pay your Corporation Tax.
To find out more about Corporation Tax and submitting your Company Tax Return check out our guide.
Accounting software for limited companies
Using an accounting software is the perfect way to keep the records you need as a limited company.
With Bokio accounting software, you can do your bookkeeping, invoicing, and manage your finances in one place. Our automated reports include the balance sheet and profit and loss sheet you need to file your annual accounts. Bokio is Making Tax Digital compliant, so you can submit an automated VAT Return to HMRC in just a few clicks.
We make managing your finances simple so you can get back to running your business.