Companies need to prepare full-fledged statutory accounts well before time, analyse them, and submit company accounts on time to avoid tax penalties. If you aren’t well-aware of what does statutory mean, keep on reading this blog till end.
What does statutory mean?
Statutory accounts or annual accounts are a legal obligation for public and private limited companies. These accounts are required to be filed by the end of every financial year; these accounts include crucial financial records and data of the company for a particular financial year. The financial records indicate the company’s financial performance throughout the year and help determine its potential and efficiency. Apart from it, statutory accounts are also useful to predict the company’s future growth or decline.
You might have come to know what does statutory mean. However, filing annual accounts is quite a troublesome task. It takes strenuous efforts and a lot of time to file the annual accounts.
This comprehensive blog will help you with 5 essential tips to file your annual accounts, and it’ll also provide you with a proper checklist to prepare your annual accounts.
What do you need to include in statutory accounts?
While preparing statutory account UK, you must take into account the following essential documents:
- A Comprehensive Balance Sheet
- Profit and Loss Account
- Notes about the Account
Here are the 5 Tips to prepare and file statutory accounts on time
Try to be an early bird
Be it preparation of your annual accounts or submit company accounts, try to do it at the earliest. It takes a lot of time to assemble and organize the statutory accounts. That’s why it’s best to start early.
Businesses operating in the UK need to submit company accounts every financial year. These accounts are sent to Companies House and HMRC with your tax return, and you also need to forward the copies to company members, including shareholders and stakeholders. The Companies House also makes your statutory accounts available to the public.
Follow the checklist to prepare and submit company accounts
You can follow this checklist to prepare and submit company accounts. It can prove to be really useful to keep everything in order and sorted out.
- Claim all of your legal expenditures: In financial records, every penny matter. That’s why you should claim all of your legal expenditures; it will translate to less corporation tax.
- Chase unpaid invoices: The statutory account should be as precise as possible; you should collect all of your unpaid invoices and take them on the record before filing your statutory account.
- Keep everything sorted out: Statutory account includes a bunch of paperwork; when filing your statutory account, make sure to arrange and have every essential record.
Take automated or human help
It can be very difficult to prepare statutory accounts on your own, but it can become a lot easier if you get some help from accounting software. There is various software available online that can help you prepare and submit company accounts. Apart from it, you can always hire a proficient accountant to handle your legal requirements, including statutory accounts. The accountant will handle all of your legal, financial requirements and will be responsible for on-time filing of tax returns or stator accounts – a good bargain.
File your statutory account early
Filing statutory accounts earlier can save you time in case of rejection or any kind of mishandling. Above all, it will help you get rid of late fees. Make sure to enable email reminders to stay updated about your deadlines.
Try to file online
The government has an online platform dedicated to filing statutory accounts. It is more convenient and faster than filing your statutory accounts by hand. The automated system also indicates all types of errors in your files or any missing document. This method is easy, lightning-fast, and doesn’t require much of your effort filing your statutory accounts.
If you are still unsure what does statutory mean, then you should better not involve in the process of submitting the accounts yourself. However, to have an idea, you can look at the limited company accounts template available online. We suggest to ask for expert advice and get help from accountants to ensure everything is complying with HMRC rules. Get in touch with expert accountants of SaKtax Accountants and Tax Consultants for optimal results.