If you have a Limited Company in the UK and never prepared statutory accounts, you should make a one right away. That’s because these accounts should be provided to the shareholders to let them know about your company’s financial performance.

Commonly referred as annual accounts, such accounts must be filed with Companies House every year. This type of account helps to report the company’s taxable profit or loss in accurate manner and find out the corporation tax due to HMRC if there is any.

Statutory account must include a profit and loss account, a balance sheet, notes to the accounts, a director’s report, and an auditor’s report.

In the balance sheet, assets and liabilities of the company are shown which must be signed by the company’s director. This balance sheet help determine the amount of cash available in your business. While in the profit and loss account, a profit is shown by taking the sum of sales minus the costs.

In the accounts, many figures are accompanied with different notes which can explain details about the financial statement. These notes can tell to whom money is owed to (whether bank, company or taxman) and if any payments such as a fine has been made or not.

Apart from the above things, there is also director’s report which summarises the company’s main activities, a business review and predictions of the company. The report must include the names of directors, details of the dividends and notes if the balance sheet marks a reference to notes.

In case if your accounts have been audited, you must disclose the amount of remuneration paid and any benefits in your notes referring the accounts to the auditor. The auditor’s report must state the auditor’s name as well.

You must file first accounts 21 months after registering with Companies House. Then, you must file nine months after end of your company’s financial year. If you miss the deadline to file and submit to the Companies House, they can close your company or even prosecute you. So, you need to very careful.