Here at Hayhursts, we like to educate as much as we like to crunch those numbers. That’s why this week’s blog is all about the daunting task of preparing your Statutory Accounts and how – if you fancy a go at it yourself – we can help you get it right the first time without any drama or mishaps. Of course, if you’d rather not, then just let us carry the burden for you. Either way, you’re welcome…
So, what are statutory accounts and what is the difference between management and statutory accounts?
Statutory accounts are an annual report showing the performance and position of a company. They have a prescribed format and need to be formally approved by your board and filed on the public register. Whereas management accounts are typically drawn up on a more frequent basis (usually monthly), have no prescribed format and are for internal use only.
What is included in statutory accounts?
Generally, accounts must include profit and loss, a balance sheet and notes to the accounts. Group accounts should also be included if appropriate. The accounts are generally accompanied by a directors’ report signed by a secretary or director, including a business review (or strategic report). Unless the company is exempt from audit, a signed audit report will also be required.
I’m only a small company, do I need to disclose the same information as a larger company?
You’ll be happy to hear that there are size classifications for companies and within this, smaller companies are exempt from certain disclosures. These size limits are as follows – you must meet at least two of the following and (unless it is your first year of trade) do so for two consecutive years:
- turnover must be not more than £632,000
- the balance sheet total must be not more than £316,000
- the average number of employees must be not more than 10
- annual turnover must be not more than £10.2 million
- the balance sheet total must be not more than £5.1 million
- the average number of employees must be not more than 50
- annual turnover must be no more than £36 million
- the balance sheet total must be no more than £18 million
- the average number of employees must be no more than 250.
A large company is deemed to be those falling outside of the medium-sized company limits.
The above size limits are also applicable for Limited Liability Partnerships and guess what, we at Hayhursts are able to prepare this format of accounts using our specialist software.
No company wants to disclose more information than they have to, so to make sure you claim the correct exemptions and therefore only disclose what you absolutely need to, why not contact us to prepare these for you?
I’m a LLP, what impact does this have on my statutory accounts?
For Limited Liability Partnerships the size classifications and therefore exemptions shown above will still apply. There will be some disclosure differences due to the structure of an LLP company. If you have any questions then please get in touch with us.
Do I need an accountant to prepare my accounts?
No, you don’t. However, if you don’t have the experience of preparing statutory accounts, it can be a very daunting and lengthy process. So why wouldn’t you want someone to prepare these that has many years of experience, with market leading software to produce technically compliant financial statements?
How do you prepare financial accounts?
Statutory accounts can be produced in Word or spreadsheet form or by using specialist software (as we do), which certainly avoids the dreaded page number issue or chasing a rounding difference around a manual set of accounts (we’ve all been there)!
Can I file my accounts online?
Dormant and micro-entity accounts can be, using Companies House Web Filing service. Our software allows us to file for the above types of companies, making this an efficient filing process for you (no more manual signatures and posting of paper documents). So why not let us prepare and file the accounts on your behalf?
What is the deadline for submitting accounts?
Your private limited company accounts have to be filed with Companies House nine months after your company’s year-end e.g. for 31 December year-ends, your accounts need to have been delivered to Companies House on or before the following 30 September.
Whilst this seems like you have loads of time to get your accounts prepared and filed, if you aren’t familiar with preparing the accounts yourself, it can be a time-consuming process. Why not contact one of our experts to alleviate the pressure for you?
Where do I send our paper signed statutory accounts?
Companies House’s Cardiff office is open 24 hours a day for the receipt of documents, which should be sent to (for companies incorporated in England and Wales):
Remember your accounts must be on A4 paper and signed in black ink.
What happens if I am late in filing my accounts?
Please try not to, it’s a needless waste of your money! However, should you file your accounts late, but by no more than 1 month this will cost you £150, under 3 months £375, under 6 months £750, more than 6 months £1,500 and endless scary letters from Companies House. Afterall, it is a criminal offence to fail to deliver your accounts and all directors of the company risk prosecution!
Well, let’s try and finish this blog on a happy note, shall we?! Sure, this all sounds time-consuming and pretty daunting, but we thrive on ‘time-consuming’ and ‘daunting’!
Give Hayhursts a call – as always, we’re here to help.