Financial Statements
What are financial statements?
Financial statements, also known as annual accounts or statutory accounts, are prepared on an annual basis from the financial records of your company. Unlike management accounts, these are required by external bodies such as Companies House and HM Revenue and Customs. They are also used to assess how much tax a company will need to pay. They must be completed as part of your legal obligations as a company director.
Content
Financial statements are made up of the following, as set out in the Companies Act.
1. Balance Sheet
- Assets: Details of current and non-current assets.
- Liabilities: Information on current and long-term liabilities.
- Equity: Shareholders’ equity and retained earnings.
2. Profit and Loss Account
- Revenue: Income generated from business operations.
- Expenses: Costs incurred during the financial year.
- Profit or Loss: Net result after deducting expenses from revenue.
3. Notes to the Accounts
- Accounting Policies: Explanation of the accounting methods used.
- Additional Information: Details that provide context to the figures in the financial statements.
4. Directors’ Report
- Company Performance: Commentary on the financial performance and future outlook.
- Principal Activities: Description of the main activities of the company.
Submission deadlines
Timely submission of the financial statements is crucial to maintain compliance and avoid unnecessary penalties and interest. The financial statements must be filed at Companies House within 9 months of the year end. Please get in touch and see how we can help.
Financial statements are structured reports that show your business’s financial performance and position. At Phinch, we prepare clear, accurate statements covering profit, expenses, assets, and cash flow, helping you understand your finances and meet your tax obligations.
We use financial statements to give you a clear view of your business performance. They help you track profitability, manage cash flow, and make informed decisions, while also ensuring you meet HMRC and Companies House requirements.
At Phinch, we prepare key financial statements including your balance sheet, profit and loss account, and cash flow statement. These reports provide a complete overview of your finances and support accurate tax reporting and planning.
We use your financial statements to ensure your tax returns are accurate and compliant. By clearly outlining your income, expenses, and profits, they form the foundation of your tax calculations and help reduce the risk of errors or penalties.
Yes, we don’t just prepare your financial statements, we explain them in a clear and practical way. At Phinch, we help you understand what your figures mean so you can make confident decisions and improve business performance.
We typically prepare financial statements annually to meet compliance requirements. However, we can also provide more frequent reporting to give you up-to-date insights and help you stay in control of your finances throughout the year.
A balance sheet shows your business’s financial position at a specific point in time, including assets and liabilities. A profit and loss statement shows your income and expenses over a period. At Phinch, we prepare both to give you a complete financial picture.
Yes, we use financial statements to highlight trends, identify opportunities, and improve efficiency. By understanding your financial data, we help you make better decisions that support growth and strengthen your overall business performance.
Financial statements are usually prepared annually at the end of your financial year. For limited companies, they must be filed with Companies House and used for tax reporting with HMRC. At Phinch, we manage deadlines to ensure everything is submitted accurately and on time.
Financial statements are used by business owners, investors, lenders, and HMRC to assess financial performance and stability. They provide a clear, standardised view of your finances, helping different stakeholders make informed decisions about your business.
Testimonials
What our clients say about us
Mike Perry
The whole team are incredibly helpful and great at what they do. I can't recommend them enough!
Grace Eden
Excellent guidance through process with a high degree of expertise. A very smooth experience.
John Hatton
My association with Phinch has been a positive one. Their attention to detail and thoroughness has been impressive. Communications in person, online and on the phone have been helpful and expedient, and their patience with my last-minute submission of forms takes pressure off the proceedings.