All companies and limited liability partnerships (LLP) in the UK are required by law to submit accounts on a yearly basis. Depending on the size of your company and the competency and experience of your staff, this can be an onerous burden on your business – but one that has to be carried out. The consequence for companies not submitting their accounts on time, or failing to send them in at all, can involve extremely costly fines and lead to serious sanctions that may ultimately limit your ability to continue trading.
Annual accounts are important not just for determining how much tax your company or LLP has to pay in a given year, but also for providing you with vital information about how your company is performing in terms of profitability. Having these figures to hand means you are better equipped to seek additional finance, if required, as you will be expected to produce accurate and up-to-date figures to secure a loan, grant, or other source of investment.
Accurate records required by law: your annual accounts should be a complete record of the transactions your company or LLP has made over the previous 12 months, including all invoices and statements. As a business, you are required by law in the UK to ensure you keep accurate records at all times and for at least six years in many instances.
The Inland Revenue or Customs and Excise have a duty to see that the correct levels of tax or VAT are paid by all registered companies, and they have the power to inspect your records on request.
Regardless of the size of your company, drawing on the expertise and services of an experienced UK bookkeeping service makes a lot of commercial sense. Coddan has many years of experience in providing a tailored accounting service for companies in the UK, from established businesses to new start-ups and everything in between.