An accounting firm can design London accounts that are compliant with the guidelines stipulated by the UK Companies House (the UK body responsible for the maintenance of controlled entities).
The Companies House offers a multitude of options for accountants to choose from when preparing annual company accounts for their clients, and they allow for multi-country compliance at the same time.
In addition, most firms offer clients access to the full history of an individual client’s company throughout the year as well as access to all financial reports, tax return data, and related documentation on an annual basis.
How Do Company Accountants Prepare Annual Company Accounts in the UK?
Submit Reports on Behalf of their Clients
Accountants must submit reports on behalf of their clients for the review of accounts: they must ensure that all of their client’s finances comply with the regulations and standards stipulated by UK company law.
They must file the annual company accounts of all of their clients at the end of a financial year, which is generally two months after the close of business for that particular accounting period.
To ensure compliance with UK accounting laws, all UK accountants must be licensed by the Companies House – which is subject to renewal every four years.
If you are an accountant who has not been licensed by the Companies House, then you must promptly cease practicing as one and apply to become licensed by the House as soon as possible. Once licensed, you are required to be re-licensed every four years, or until you achieve lapsed retirement status.
Prepare for the Small Businesses
The Annual Company Accountancy (AGA) is the main document in compliance with UK accounting law and regulations. Several sub-agreements are included within the scope of the AGA, including the C&E accounts, the cash flow analysis, the interim management report, the statement of cash flows, the profit and loss account, and the notebook of financial transactions.
The annual company accounts are usually prepared for the small businesses that have less than one hundred and twenty employees, and whose turnover during the previous year was no more than one million pounds.
The accounts are required to be submitted on or before the last day of the financial year which ended last June thirty-one.
The first and last days of submission are deemed to be the due day for submission if the year is not an accounting year.
You should forward the annual company accounts to your authorized credit controller, together with the relevant tax receipts, bank statements, and other relevant papers.
Includes Several Balance Sheet Reports
The preparation of the annual company accounts also includes several balance sheet reports. The balance sheet report presents the income and other comprehensive financial data by category and individual item and provides a summary of net asset and equity balance.
The purpose of preparing the balance sheet report is to provide an overview to the management of the state of the business. The balance sheet can be prepared in different ways.
The first method is to prepare the balance sheet manually, the second method is to prepare it electronically using a computerized balance sheet software program and the third method is to prepare it in a paper format using accounting software.
Includes Establishment of Payroll
The preparation of the annual company accounts also includes the establishment of payroll. The payroll is a sum of all payments made to employees, including their earned salaries, tips, money stored in the bank account, and any other amount that the employer withholds from the employee’s payable salary.
Computation of payroll requires manual entry of the employee’s wages at the end of a month, and calculation of deductions takes into account the amount of cash deducted from the salary.
An ordinary spreadsheet program is used to accomplish this task. Alternatively, an accountant may use the Quick Book Voucher and set up an electronic timesheet that allows payroll to be automatically entered.
As most of these professionals are required to have certain professional qualifications, it may be prudent to discuss this matter with them to ensure that the professional services that you require are provided.
Preparation and Submission of VAT Returns
Another part of accounting is the preparation and submission of VAT returns to the appropriate authorities.
VAT is an indirect tax, which means that it is not directly linked with the value of the product or service purchased, but is calculated based on the sale price in terms of an amount delivered or charges made for the same.
VAT is imposed by each national government and is separately calculated and administered.
Most businesses and companies file their annual company accounts as VAT returns. Companies normally incur a charge for preparing their VAT returns and it is typically less than 10 percent of the entire taxable income. Some accountants ltd offer their services to prepare VAT returns as well as perform other accounting functions.
The final stage of preparing the annual accounts is the reconciliation process. This stage compares the income statement with the balance sheet to identify any discrepancies between them. Accountants use several methods to ensure that the adjustments are made accordingly.
They generally rely on the previous accounting period’s performance to estimate how much more the company will earn from the new accounts, and use this estimate to calculate how much they will charge for the new year’s accounts.
The accounting process can be complex and time-consuming for businesses and individuals alike.
Therefore, many companies employ the services of accountants to help them compile and manage their annual accounts. Many accountants specialize in specific fields of accounting such as tax preparation and real estate valuation.
If you have your accounting department or work with a firm that specializes in accounting, it is possible that they can assist you in the preparation of your yearly accounts.
If you want to save time and ensure accuracy when comparing your accounts to your previous years, you can send all of your data to them directly.
Using a specialist accountancy service can help to ensure that your accounts are prepared accurately and reports are sent to you on time.