![]() There are several deadlines you need to take note of. In addition, you’re required to send a copy of your annual accounts to all shareholders, individuals who attend your company’s general meetings, as well as to HMRC (as part of your company tax return). An auditor’s report, depending on the size of your companyĪll limited companies are required to file their annual accounts at Companies House each year. ![]() A director’s report (unless you’re a ‘ micro-entity’).Your annual accounts are prepared from your company’s financial records at the end of the financial year. Read Full Guide Read Full Guide Calculate Now So, even if you're terrified of numbers, rest assured that there's a solution out there for you. If you're really struggling to stay on top of it all, there are plenty of small business accountants and professional bookkeepers who will be happy to help. It might sound complicated, but take it one step at a time and it's actually quite manageable. They should include information relating to your sales, your expenses, salaries of you and any employees, along with other bank transactions. Your bookkeeping records will form the basis of these statutory financial statements. If you are self-employed, your business accounts will be used to calculate your Self Assessment tax liability. If your business is operating as a limited company, you will need to submit your company accounts to Companies House. More than just a legal requirement, basic bookkeeping is an essential part of your ability to manage your business effectively.Įvery year, your business accounts will need to be completed. But what kind of records do you need to keep? However, once your business is taking shape, you will need to start thinking about keeping up-to-date and accurate accounting details of your income and expenses. At this stage there are more pressing things for you to think about. Optimising your accounts payable, staying on top of your accounts receivable and conducting in-depth cash flow analysis at least once a month are examples of steps you can take to improve your cash flow.īookkeeping requirements are unlikely to be at the forefront of your mind. The cash flow statement, which indicates how much money is flowing in and out of your business is one that you should review on a regular basis. The phrase “cash is king” rings true, particularly for small businesses. It also comprises other key elements like COGS, gross profit and net profit or loss. The P&L shows a company’s revenues and expenses. ![]() The balance sheet provides a summary of a company’s financial condition, and reports its assets, liabilities and owners’ equity at a specific point in time. The balance sheet and profit and loss statement are two important financial statements every business owner needs to review. There are a few key accounting terms and concepts you should know. With this knowledge, you can more easily stay on top of your day-to-day bookkeeping or accounting responsibilities, and communicate with your business stakeholders. ![]() Accounting is often one of the first aspects small business owners hand off when their business scales.īut while you can delegate your accounting to a professional, it’s still important that you have a good grasp of the basics. ![]()
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