What are annual accounts?

0

Hello, I am researching the filing and record-keeping requirements for a limited company in the UK, and I am trying to wrap my head round annual accounts. Could someone please explain exactly what they are? Thank you!

Answers

0

Annual accounts need to be prepared for both Companies House and HMRC to report the annual financial activity of your company. This activity includes all of the money spent and received by the business. You will use your receipts, invoices and other financial records to correctly prepare these accounts and work out how much profit your company has made in the year and how much tax you have to pay to HMRC.

You can prepare annual accounts yourself but many directors appoint an accountant to do this for them. Although you will have to pay a fee to an accountant, they are often able to suggest tax efficient strategies for improving your bottom line.

a year ago
 

Your answer