Statutory accounts, also called annual accounts, are a set of financial reports that are prepared at the end of a company’s financial year.
Frequently asked questions
You must always send copies of the statutory accounts to:
- Companies House
- all shareholders
- people who can go to the company’s general meetings
- HM Revenue and Customs (HMRC) as part of the Company Tax Return.
Statutory accounts must include:
- a ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year
- a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year
- notes about the accounts
- a director’s report (unless you’re a ‘micro-entity’)
It is also important that the balance sheet has the name and signature of the director printed on it.
If your company is either small, a micro entity or is dormant, you could be able to send simpler (‘abridged’) accounts.
Abridged accounts are less detailed than year-end accounts. This is because you do not have to disclose your net profit. The balance sheet only contains a subset of what is shown in a full balance sheet and that is the same with the profit and loss account.
Small businesses may find it difficult preparing and filing their company statutory accounts along with communicating with HMRC and Companies House.
Appointing an accountant minimises mistakes and allows you to grow your business rather than spending unnecessary time worrying about your financial accounts.