As a business owner you will need to prepare annual accounts to detail the profit and loss of the business throughout the financial year. These accounts will also contain a balance sheet which will show the worth of the business as a list of fixed assets, bank balance, debtors and creditors.
Your bank will often ask to see your accounts annually. You may also have to provide regular management accounts if you have a loan or overdraft in order to adhere to your bank’s requirements.
HM Revenue & Customs
You will need to submit your full annual accounts to HM Revenue & Customs so that your tax bill can be agreed.
If you are a Limited Company, you will need to submit your Abbreviated Accounts to the registrar of Companies at Companies house.
The most important reader of your business accounts is YOU! So don’t just file them away when your accountant provides you with a copy; use them to help push your business forward.
Accounts can help you to analyse your business and see where you can make improvements in order to optimise profit. They can also help you to prepare budgets for the next financial year using the historic figures as a guide; however, make sure you make adjustments for any changes such as a large new customer or the loss of a major competitor.
New Loan or Overdraft
You are unlikely to gain any additional borrowing without having some up-to date financial reports to show to your lender, so year-end accounts and management accounts are crucial.
If you would like to discuss your business accounts with one of our accountants, please do not hesitate to contact us.