A year end refers to the end of a company’s financial year. As such, the year-end accounts are a summary of a company’s performance across the financial year, and will typically include a directors’ report, balance sheet, profit and loss statement and explanatory notes. These financial statements and reports, along with the company tax return (CT600) must be filed with HMRC.
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What are Bank Deposits and depositing cheques?
A bank deposit involves placing money into an account with a banking institution. Depositing a cheque is one way to make a deposit. You can also deposit cash or make a funds transfer.
What are Cost of Sales?
The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold. The cost of sales is a key part of the performance metrics of a company, since it measures the ability of an entity to design, source, and manufacture goods at a reasonable cost.
Small Business Guide to Debits and Credits
As accountants who specialise in small business needs, we're familiar with the challenges that you face-and have put together a series of articles to help you easily understand the basics of accounting.
Your company year end accounts explained
Approaching a company's first year-end can feel incredibly stressful, as there will be a lot of paperwork you need to file at this time.
In this article we provide you with a simple list of what you will need to do, along with a few tips to make the whole process easier for you. We finish with the penalties and deadlines for late filing.
What is Employment Allowance?
Employment Allowance enables eligible employers to reduce their National Insurance bill by up to £4,000 each year.
What are Accruals?
Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.
Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.
One example of accrued revenue is accrued interest.
On the balance sheet, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.
What are Debtors?
The term ‚Äòdebtor' refers to an individual or company that owes money, or is in debt to an individual or organisation. An example would be a customer that has purchased a product or service from your business. In the balance sheet, debtors are listed under the current assets section.
What are BACS and CHAPS payments?
CHAPS-an abbreviation for Clearing House Automated Payment System-is a same-day bank-to-bank payment system. It is typically used for large, one-time payments, as the transfers are relatively expensive to process. There are no upper or lower limits to the amount that can be transferred.
BACS, or Bankers' Automated Clearing Services enables payments to be made electronically from one bank to another. The transfer method handles all debit and credit card transactions, has an upper limit of £250,000 per transfer and is mainly used for low-value transactions. BACS payments take three working days to clear.
What are Year End Accounts?
A year end refers to the end of a company's financial year. As such, the year-end accounts are a summary of a company's performance across the financial year, and will typically include a directors' report, balance sheet, profit and loss statement and explanatory notes. These financial statements and reports, along with the company tax return (CT600) must be filed with HMRC.
What is Amortisation?
In business accounting, amortisation is a method of calculating the value of a business asset over time. It is the process of spreading out the cost of an asset over its useful life.
In relation to loans, amortisation refers to the spreading out of loans into a series of fixed monthly installments.
How long do I have to file my accounts?
Your first set of accounts is due 21 months after the date you registered with Companies House. Your accounts for the subsequent financial years are due nine months from your financial year end. Do note that if you change the accounting reference period, the filing time may be reduced.
Different deadlines apply for public companies.
What are Credit Notes?
A credit note is a document that a business issues to its customers. It is used whenever an invoice needs to be changed and re-issued, such as when a customer changes or cancels an order, or is charged an incorrect amount.
What is a Balance Sheet?
A balance sheet is a financial statement that provides a snapshot of the financial condition of a company, showing how much it owns (assets), owes (liabilities) and the amount that is left over for its owners (owners' equity) at a specific point in time. It is typically completed at the end of a month or a financial year.