What’s included in statutory year-end accounts?Year-end accounts, also known as ‘financial statements’, differ from the accounts prepared for and used by internal management to running a day-to-day business. The financial statement would generally have director’s report, which summaries the business performance for the period the accounts are prepared to present their view of its current affair and future performance. We are the accountants in Reading and believe in explaining each aspect of the financial statements to client.
Other things required in financial statement include is balance sheet, profit and loss statements and explanatory notes. The balance sheet will show details of total company’s assets and liabilities, a profit and loss account shows the summary of income and expenses over the period and finally explanatory notes detailing about the profit and loss account and balance sheet.
Management AccountsManagement accounts are prepared for internal business purposes for the owners or the management to provide vital information about the performance of the business on regular intervals. As opposed to statutory accounts, there is not a legal requirement to prepare management accounts; hence it can be prepared as often needed by management.
Management accounts are done to evaluate the health of your business and review them regularly; it is recommended to prepare it every month.
Management accounts also include balance sheet and profit and loss account, but it is more detailed as compared to statutory accounts. It will also include a cash flow statement showing where and how the cash generated in the business is utilised. This statement provides the vital information to the business owners to identify if the reported net income is not turning into cash. Other reports which can be part of monthly management accounts are comparison of actual to the budgets
We believe accounts preparation is important but preparing accurate and timely accounts is even more essential for your success. Accounts prepared by us are helpful to you in following ways:
- Accurately calculate the profit or loss in the business.
- Achieves tax compliance and avoid penalties
- Banks and other financial institutions rely on it to sanction business loan and mortgages.
- Enables to control the cash flow in the business.
- Information is useful for management to make important decisions.
- Analytical presentation of financial information of the business at any time.
- Helps to keep track of the staff cost to revenue.
- Establish business performance against projected business plan.
- Highlight the problems areas and suggest remedies.
- Apply for and receive the correct amount of benefits or credits
- Tax planning and dividend payments
- Help in detecting thefts or irregularities within the business itself.
- Provide valuable information and details for the future sale of your business.
- Chances of business operating and succeeding increases.
We go the extra mile to work pro-actively to reduce your tax bill lawfully, increase profitability and increase the value of your business.