Statutory Accounts Services

The Profit & Loss account provides a clear picture of your company’s performance over the financial year. It summarises income received and expenses incurred, but the level of detail can vary depending on the nature of your business.

Every UK company must also file a Company Tax Return with HMRC each year, disclosing earnings, losses, loans, and other factors that affect tax liability.

The format of a P&L can be tailored to suit different industries. For example, a retail business with multiple stores may want income and expenses broken down by location, while a construction company may prefer profitability shown by individual projects.

For management purposes, P&L reports should be customised—taking into account the type of business, the required level of detail, the reporting frequency, and the layout that best supports decision‑making.

A Balance Sheet provides a snapshot of your company’s financial position at a specific point in time. It outlines assets, liabilities, and equity, giving a clear view of what the business owns and owes.

To add real value, the Balance Sheet should be accompanied by notes that highlight key ratios—such as liquidity, debtor days, and inventory turnover. These indicators reveal potential risk areas and help you anticipate cash flow requirements, ensuring you can plan ahead with confidence.

Notes to the accounts shed light on crucial information that is valuable to any stakeholder of the business. They often include details such as the breakdown of fixed assets, showing what has been purchased, sold, and depreciated during the year. They may also disclose related party transactions, highlighting any dealings with directors, shareholders, or connected businesses. In addition, notes can explain creditor and debtor balances, clarifying whether money owed relates to the bank, HMRC, or directors. Together, these insights provide transparency and context, helping stakeholders assess performance, identify risks, and understand the company’s financial position more clearly.

Under the Companies Act 2006, larger UK companies are required to include a Director’s Report within their annual accounts to enhance corporate transparency. This report outlines the company’s principal activities, highlights significant events that occurred during the year, and explains their impact on the business. It also serves as an opportunity to provide deeper insight into overall performance, regulatory developments, and changes in the wider economic environment. In some cases, the report may also set out details of dividends the company intends to distribute, offering shareholders a clearer view of both results and future outlook.

An Auditor’s Report is required only for companies undergoing an audit, whether compulsory or voluntary. Prepared by the company’s appointed auditors, the report follows a detailed review of the statutory accounts. Its purpose is to confirm whether the accounts present a true and fair view of the business’s financial position and performance.

This independent assessment provides reassurance to directors, shareholders, and external stakeholders, strengthening confidence in the accuracy and reliability of the company’s reporting.