What are year-end accounts?

So, you’ve wrapped up your first financial year – congrats! Now it’s time to get to grips with your year-end accounts. 

But what exactly are they and why do they matter? 

Think of them as an annual health check-up for your business. They are essentially a collection of documents that offer a glimpse into your company’s performance over the last year. 

They also help to paint a picture of how your business is doing with its profits and losses, along with assets and liabilities. And they’re not just for show. Your year-end accounts are essential if you want to stay compliant with HMRC 😱

Are year-end accounts the same as annual accounts?

Yep! Your year-end accounts can also go by a few different names. You might have seen them referred to as:

• End of year accounts
• Financial statements
• Annual accounts
• Statutory accounts

Confusing, we know! But fear not, these terms all mean the same thing.

So, who needs to prepare year-end accounts?

If you’re a limited company in the UK, you’ll need to prepare year-end accounts. It doesn’t matter whether your company is big or small, or how much money you’ve made – you’re still required to prepare and file them.

Here’s a list of everything you’ll need to include

1. Balance sheet

Everything your company owns, owes, and is owed on the last day of the financial year. Remember, a director’s name will need to be printed on the balance sheet and signed.

2. Profit and loss account

Outline of your sales, running costs, and any profit or loss made over the last financial year.

3. Notes about the accounts

Any additional details and explanations about the figures you’ve included. This helps HMRC understand your numbers (and avoids confusion and fines!).

4. Directors report

Summary of your performance and activities – but you won’t need this if you’re a micro-entity (a small company). We’ve covered this in more detail here.

5. Auditor’s report

You might need this, depending on the size of your company since small companies are usually exempt. HMRC has a little more guidance on this here.

What is the deadline for year-end accounts?

The deadline for filing year-end accounts is unique to each business, but it usually aligns with the end of your financial year (which can be different to your accounting period).

For most businesses, annual accounts can be filed within nine months of the end of the financial year. 

Here’s an example: If your financial year ended on 31st May 2024, you have until 28th February 2025 to submit your accounts.

What happens if I’m late?

It’s really important that you file your accounts on time to avoid any penalties or interest from HMRC.

If you do miss the deadline, HMRC won’t go easy on you. You’ll face an initial penalty of £150, and the longer you delay, the more this penalty increases. If your delay extends beyond three months, the fines can quickly add up. Definitely something to avoid if possible!

So, if you keep everything in order throughout the year, you’ll be set to meet your deadline.

Where do I send my year-end accounts?

You’ll need to send them to:

• Companies House: This is the official register of companies in the UK. You can submit your accounts online through their web filing service or by post.
  
• HMRC: For tax purposes, HMRC will also want a copy of your accounts. You can send them as part of your company tax return.

Can you help with my end of year accounts?

Absolutely we can! Although you can complete your year-end accounts yourself, it’s easier and less stress to get help from a professional.

We’ll sort your company tax return and annual accounts, completely hassle-free. Our accredited accountants can take care of it all.