Financial statements are the summary of an organisation’s financial activity for a given period of time. For smaller businesses, these are usually prepared on an annual basis. They usually consist of
• Profit & Loss account, - a record of income generated and expenditure incurred during the period.
• A Balance Sheet, - a financial snapshot of the assets (owned) and liabilities (owed) of an organisation at the end of the period.
• Financial Statements are also often referred to as Annual Accounts.
The directors of limited companies are responsible for ensuring that financial statements, prepared in accordance with relevant accounting standards and company law, are filed with Companies House within good time. These can be reasonably complex.
However, even the most basic sole trader business, perhaps just a self-employed ‘one man band’, is still likely to need some form of accurate summary on which to base their tax return. This would often be known as an ‘Income and Expenditure Account’.
The financial statements of any business are likely to be based upon the books, but will also include various accounting adjustments and estimates, and likely some additional tax claims.
We can prepare all types of financial statements: for sole traders, clubs, charities, partnerships, Limited liability partnerships, and limited companies. For company accounts, we can also file these electronically for you, and link them directly with the Company's Corporation Tax Returns.
We can also provide financial statements with a Chartered Accountant’s certificate. This may be required for a number of reasons, including for a loan or mortgage application, for grant or funding applications, or for supplier credit applications.
Financial Statements we prepare will be in compliance with all relevant legislation and will also ensure all relevant tax opportunities are taken advantage of.