Skip to main content

Why Accounts Preparation Is Essential For Businesses

By August 14, 2018August 23rd, 2018Accounts Preparation, Financial Reports

Whether you choose to do it yourself or outsource to an accountant, accounts preparation is vital. Completing this will prevent any payments being made incorrectly and ensures you know exactly what payments must be made.

Coleman & Co offer accounts preparation for all businesses, regardless of what payments must be made.

Dealing With The HMRC

The main reason that accounts preparation must be completed is to deal with the HMRC correctly. Completing accounts preparation of your annual accounts means the HMRC can see your finances and ensure the correct tax payments are made every year. There are several people who you should send your annual accounts to, including:

  • Companies House
  • Company Meeting Attendees
  • HMRC
  • Shareholders

Whilst your annual accounts will have different deadlines, you should ensure tax returns are never late or inaccurate. Once annual accounts are completed and sent off, this can then be compared to your tax returns, so that no errors have been made.

What To Include In Annual Accounts

There are several features of every annual account to give the HMRC and others a good understanding of business finances. All features of your annual or statuary account should be organised during accounts preparation. This then makes it an easy process when creating your annual accounts for the past year. There are several main factors to include:

  • Account Notes
  • Balance Sheet
  • Director’s Report
  • Profit and Loss Account

Any balance sheet that is included must also include a director’s name and signature. Therefore, the reliability of the account will be improved and it shows the accounts should be accurate. All finances within this account should be completely accurate. Not only could you face fines from the HMRC but shareholders will be unhappy with any false information they receive.

Accounting Records

Throughout the year, you should always be recording your accounts, making it easier to complete accounts preparation. All expenditure and income should be recorded, as well as any liabilities and assets you currently hold. You should also include details of your staff payroll information, including every financial detail.

By accounting for all financial records throughout the year, your accounts preparation process should be quick. You can easily look at your records from the previous business year before creating a report for your statuary accounts. Without recording throughout the year, accurate annual accounts are possible but more difficult to create.

It is always possible to keep track of your income and expenses throughout the financial year. If you are struggling to manage this, outsourcing your bookkeeping could be the best option to avoid inaccurate finances during the year.

Regular Statements & Accounts

Accounts preparation is not just useful for your end of year accounts and can be used at any time for your business. Regular financial statements can be created every month, meeting all legislative requirements and giving you the financial information you need. Month upon month, we can organise your tax records for the end of the tax year. Tax will always be calculated correctly by our team, regardless of which tax must be paid.

Accounts preparation can also be used whenever significant payments are made elsewhere or to keep shareholders updated. Your business must always be in control of finances, with accounts preparation being just one way this is achieved.

Contact Us

Coleman & Co can help all businesses in Lisburn regarding your annual accounts and accounts preparation. Contact our team today on 028 9266 3599 or fill in our contact form to make an enquiry. You will always receive a fast response from our team for any service you require.

Leave a Reply