How To Prepare Year-End Accounts For Limited Companies

When it comes to end-of-year accounts, limited company registered businesses are legally obligated to file their declamatory financial documents with the HMRC and the Companies House. You can use several methods when preparing your company accounts. 

However, a professional accountant can help you keep your year-end accounts recording on track throughout your business’s fiscal year. Here’s a closer look into everything you need to know about how to prepare company accounts for your limited company. 

What information do I need to report?

Any professional corporate accountant will be able to give you a breakdown of the documents you need to include in your year-end accounts reporting. For limited companies, these documents typically include: 

• Your business’s tax return documentation
• Your limited company’s documentation of your statutory accounts   

Your tax return usually encompasses your CT600 form, which contains information determining how much you need to pay the HMRC. 

On the other hand, in your statutory accounts, you need to disclose elements like your turnover, business expenses, any tax deductibles, and your past year’s profit. This should be an overall overview and does not require a record of each individual transaction. You’ll therefore need to keep accurate records of your income statements and have a robust bookkeeping system to establish your overall financial position. 

A Statement of Financial position should also be included in your statutory accounts. This is all the information you’ll need to disclose in your end-of-year accounts for your limited company. 

The key financial reporting deadlines you need to know

One of the main things you need to keep in mind when dealing with your limited company’s year-end accounts is the deadline for various reports. Here’s a breakdown of the most important deadlines you need to keep in mind. 

The penalties for missing these deadlines

Without the help of a professional accountant, you may be concerned about the amount of time and effort it takes to ensure all these accounts are in order. While these processes are indeed time-consuming if you’re new to them, missing reporting deadlines can result in hefty penalties. 

More serious cases of missed financial report submissions can cause your business to be removed from the Companies House register, which will greatly discredit your limited company. However, usually, you can expect to pay a monetary penalty, which increases depending on how late you are. The penalties are substantially higher if you operate as a private company as opposed to a public company, as you can see in the table below. 

Are there any other reporting duties that I need to know?

If you run a limited company, then there are some other responsibilities you need to be aware of when it comes to accurate financial reporting. These duties are essential for disclosing any other financial information to the tax and legal authorities to ensure that you remain in line with the government’s requirements for business. In addition to reporting your year-end accounts, you will also have to carry out the following duties. 

• Take care of your VAT returns: VAT returns are not a legal part of year-end accounts reporting, but remain a legal obligation nonetheless. If your limited company’s taxable turnover exceeds £90,000 within any 12-month period, you are legally required to register for VAT and file returns to HMRC. This obligation ensures compliance with UK tax laws. Once registered, you must submit VAT returns, typically on a quarterly basis. These returns report the VAT you have charged on sales and the VAT you have paid on purchases. The net amount must be paid to HMRC within one month and seven days of the end of the reporting period.

• Filing your confirmation statement: Every limited company must file a confirmation statement at least once every 12 months, regardless of whether your company is trading or dormant. This requirement ensures that Companies House has up-to-date information about your company. The confirmation statement confirms that the details held by Companies House—such as the registered office, directors, and shareholders—are accurate and current. If any information is incorrect or outdated, it must be updated before or at the same time as filing the confirmation statement.

Our year-end accounting checklist

To make things easier for you while you run your limited company, here is a checklist for you to follow to ensure you keep track of all your year-end accounts reporting. 

• Get all your financial records together: Collect all necessary documentation, including bank statements, sales invoices, and expense receipts.

• Make sure you get paid: If you have any overdue payments from customers or clients, you need to ensure they pay up before you file your year-end accounts. Be proactive about following up on any overdue invoices to improve cash flow beforehand. Collecting these payments helps ensure that your financial statements accurately reflect your income and reduces the risk of underreporting.

• Make sure all expenses are accounted for: Compile all business-related expenses to ensure they are recorded correctly. This includes identifying any prepayments or accrued expenses that need to be accounted for. Properly documenting expenses can help minimise your corporation tax liability.

• Conduct a cross-referencing activity of all accounts: This will help you verify that the figures in your accounts align with your supporting documents. This includes ensuring that any sales made but not yet paid for are recorded as outstanding debts rather than as revenue, which can help maintain accurate financial reporting.

• Make sure all your employee information is up to date: Before you disclose your year-end accounts, make sure records reporting payroll, employee benefits, and, of course, employment statuses are up to date. This prevents potential errors related to tax or National Insurance contributions and ensures compliance with regulations.  

Choose Braant for help with your Limited Company Year end accounts

Braant’s team of fully qualified and experienced accountants specialise in preparing annual accounts for limited companies. Our expertise ensures that your accounts are compliant with legal requirements and submitted accurately and on time, reducing the risk of penalties and errors. 

If you need support in ensuring your year-end accounts are up to date, make sure you contact us about how to prepare company accounts for your limited company, and a member of our team will happily help.