What are the statutory accounts?
Directors or Members of an organization create statutory accounts, also known as financial statements or year-end accounts. To fulfill mandatory filings with Companies House and HM Revenue & Customs.
Who Must Submit the Required Statutory Accounts?
After the end of their reporting periods, all types of Limited Companies, PLCs, and LLPs must send statutory accounts to Companies House.
When do statutory accounts have to be filed?
The accounting period for a limited liability partnership (LLP) or a corporation is usually 12 months. Yet, the Directors or Members of each business have the option to extend or reduce the accounting period by up to 18 months (usually permitted once every 5 years). After the end of the accounting period. The limited liability partnership (LLP) or corporation has nine months to file its statutory accounts with Companies House. After that, the public can look at them. Companies House consistently states that a company has 21 months from its formation date. To submit its initial set of financial statements.This is the only time this rule is not true.
Not only must these statutory accounts be sent to Companies House, but they must also be sent to the shareholders or members of a limited liability partnership. This is true whether the company is on the stock market or not. HMRC will also get these accounts from the company in question, along with the corporation tax return.
Who uses statutory accounts or Financial Statements?
Some of the people who rely on financial statements are investors, bankers, and businessmen.
Financial statements can be helpful in a wide range of situations. Common users are pointed out, along with what they say they need from the list. Financial statements are used by many different types of people for many different reasons.
CEO
Management must have a firm grasp on profitability, liquidity, and cash flow in order to make good business and financial decisions every month.
Competitors
Competitors often try to get a hold of a company’s financial records so they can figure out how healthy the company is. Getting new information could give them an advantage in a strategic way.
Customers
When deciding on a supplier for a large contract, it is common for the customers to get details about the supplier’s financial position and performance to know if they meet up the terms and conditions.
Employees
Staff can learn about the finances of the company through detailed financial statements. This helps both employee participation and understanding of how the business works.
Government
The corporation’s home government will ask for financial records to find out if the company has paid enough taxes.
Traders
For outside experts to sell the company’s stock to clients, they need to know about its finances.
Investors
Investors have the right to financial reports that show how the business is doing because they own it.
Lenders
The lender will look at the borrower’s financial statements to see if they will be able to pay back the loan and interest.
Credit Agencies
Analysts at credit rating agencies look at a company’s finances to give the company or a specific instrument a rating.
Suppliers
Suppliers need financial records to figure out if a company can be trusted with money.
Trade Unions
For the union to know if a company can pay its union workers, it needs to know how much money the company has.
Taxsteins Ltd to the Rescue?
Our teams of qualified Accountants and Advisors are experts at putting together statutory accounts for all kinds of businesses, from limited liability companies with a single shareholder to multi-member LLPs with many members.
Our expertise allows us to not only make sure that the statutory accounts are made in accordance with all laws and rules, but also to give our clients expert advice that helps them understand and interpret the statutory accounts and see how they affect the business, them as individuals, and the outside world. In addition to making sure that the statutory accounts are made in accordance with all laws and rules, our knowledge also allows us to give our clients expert advice.
Our goal is to use these financial statements to back up the strong strategic advice we give to our business clients and make sure they are making progress toward their long-term goals. If you require further assistance please contact at 02071559545 or info@taxsteins.co.uk
