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Preparing Annual Accounts for Your Limited Company
All limited companies registered in the UK have a legal obligation to prepare annual accounts every year. Depending on the size of your company and the complexity of its financial activity, you may be able to manage bookkeeping and accounting duties yourself. However, the majority of companies choose to hire accountants to ensure accuracy and compliance.
1/16/20251 min read
What are Annual Accounts?
Annual accounts, often referred to as ‘financial accounts,’ ‘statutory accounts,’ or ‘company accounts,’ provide a summary of an organisation’s financial activity over a set period of time (usually 12 months).
They are comprised of financial statements and records that deliver comprehensive information about a company’s:
Transactions
Operating performance
Financial position at the end of its financial year
Who needs to receive annual accounts?
All limited companies are required to deliver their annual accounts to:
Companies House
HM Revenue & Customs (HMRC) as part of their Company Tax Return
Company shareholders or guarantors (‘members’)
Every holder of the company’s debentures
Anyone entitled to attend general meetings
Understanding and fulfilling this obligation is critical to ensuring your company remains compliant with UK regulations.
What should full annual accounts include?
All active companies must prepare full annual accounts for their members and HMRC. These accounts should typically include:
A balance sheet – showing the company’s financial position at the end of the financial year.
A profit and loss account – summarizing the company’s income and expenses over the financial year.
Supporting notes – providing detailed information about the accounts.
A director’s report – outlining the company’s performance and governance.
An auditor’s report – unless the company is exempt from audit.
Preparing accurate and compliant accounts ensures your business meets its legal obligations and maintains transparency with stakeholders.