How to Prepare your Limited Company for Year End Accounts

Posted 05 Nov 15

As a business owner you will be legally required to file your year end accounts with HMRC and Companies House at the end of every financial year.

This process can be especially daunting for young company owners, but with the help of an experienced and professional accountant, it can be quick and simple.

Although the documents you will need to file depend on the type of company you own, year end accounts will always include two documents - your corporation tax return (CT600) and a set of abbreviated accounts.

Your corporation tax return contains all the details of your company’s income minus any tax allowances and expenses. Based on the profits you earn, HMRC will be able to calculate how much corporation tax your company needs to pay.

Your abbreviated accounts, on the other hand, are filed with Companies House and show details about your company finances, including cash held in the company, assets, debtors and creditors.

A lot of business owners find themselves filing their year end accounts at the very last minute - a practise we strongly discourage our clients from. The stress related to trying to collect and organise all the documents required and the long waiting time on HMRC helplines can lead to various mistakes and high penalty fines.

Make sure you know which documents prove your company’s activity and in what form they need to be delivered.

Leaving your year end accounts to the last minute can also result in overpaid tax. If you would like to find out if you have been overpaying your tax or how you can avoid it, contact our experts at Tawanda Accountants and we will guide you through each stage of year end accounts process.

Since every pound spent on business purposes and the development of your company can be claimed off your tax, it is important that you understand which expenses are deductible. Many business owners are unaware of the expenses they can claim when travelling on business purposes or when working from home.

If you would like to find out how you can save money on your company today, contact us at Tawanda Accountants and we will help to create the best financial strategy for your business.

Remember that your year end accounts should be accurate and up-to-date and that all of your invoices are paid before you file them. Make sure you properly record all the money you have on your business bank account, making sure you know the details of every expense you’ve made.

At Tawanda Accountants we make sure our client’s documents are filed in an accurate way and are ready for investigation at any time.

Finding time to do your self-assessment and year end accounts can be an exhaustive and complex process, especially for young business owners. Filing your year end accounts on time and keeping track of your expenses at all times allows you to plan your financial year better and help you create a realistic budget for your business.

About Us

As a leading UK accounting firm and expert business consultancy, Tawanda Accountants carry out scrupulous accounting and provide payroll services and procedures for small businesses, individuals and business start ups.