Statutory and Annual Accounting
So what are statutory accounts? Statutory accounts (also called annual accounts) are financial records prepared at the end of the financial year.
These annual accounts get sent to shareholders, Companies House, HMRC, and people who attend the company’s general meetings. Every limited company in the UK has to keep their records up to date, even if the company is dormant. The below Q&A should point you in the right direction, but if you’re still unsure about something just give us a ring.
What’s the difference between statutory accounts and management accounts?
Statutory accounts are mandatory, management accounts are not. If you find yourself at a loose end, then sure, why not produce some management accounts, but it’s the statutory accounts that must be submitted annually and within a set timeframe. Management accounts are ideal for making internal business decisions using the financial data available at any given time.
What are non-statutory accounts?
Any other financial statement issued by your company is a non-statutory account. These are valuable in terms of the financial nitty-gritty details concerning your business, and helpful to use from a financial viewpoint when exploring where your company is headed.
What’s included in statutory accounts?
Where do I send statutory accounts?
All annual accounts must be sent to shareholders, Companies House, HMRC and anyone who attends the company’s general meetings.
Can Xero produce annual accounts?
No. As you know, we adore Xero and swear by it for bookkeeping purposes, but it’s not got the direct software available for creating statutory accounts. This is why accountants like us exist, to pull all the information together.
Who signs statutory accounts?
The company director.
When are annual accounts due?
You will need to file your annual accounts with Companies House within 9 months of your company’s financial year end.
Can I prepare my own statutory accounts?
Of course but it’s not easy! If you don’t want to (and we don’t blame you) then hiring an accountant will make sure you meet all the legal requirements and avoid any legal penalties. The accounts you file will become publicly available, so it’s imperative the accounts are accurate as company directors will be held responsible for any incorrect data.
As with most bookkeeping and financial activities, it can seem daunting at first. Statutory accounts are just one of the services we offer so that you can carry on running your business and leave the numbers up to us. When your accountant manages your annual accounts, not only is it a smooth process, but it’s an additional safety check that can put your mind at ease.