Accounts

The Accounts form a vital part of company formation. Every company has to maintain accounting records for smooth operations. Filing and preparation of accounting records are two of the most vital aspects of a business. Accounts have to be maintained both by the limited and un-limited companies. Accounting records are required even if the company is not trading.

Set of accounts required in a company:

• Income- expenditure or profit and loss account
• The Director’s report signed by the director himself or the secretary
• The Auditor’s report
• Account notes 
• Balance sheet with the signature of the Director

All companies whether its limited or public limited have to submit their accounts to the Registrar. Companies which are not limited has to deliver their accounts if during the period covered in the financial statement, the company was :

• A parent or a subsidiary of a limited undertaking
• A insurance or banking company
• A ‘qualifying company’ which adheres to the rules of Partnerships and Unlimited Companies Regulations 1993.
• Operating a scheme of trading stamp

For first timers

The first accounts of a company cover the time span from the day of incorporation. Remember its not the day of trading, but the day of incorporation from which the first accounting period starts. The accounting period gets over on the Accounting Reference Dates (ARD). The ARD can be 7 days either side of the stipulated date.

Filing period

For private companies, when you are filing company accounts for the first time, it must be delivered to the Registrar’s office within 2 months of incorporation. In case of public companies, the tenure comes down to 19 months. This regulation is applicable for the first timers. For others who are not filing their first company accounts, the financial statement must reach the registrar within 10 months for a private company and 7 months for a public company.

Extension of Accounts Delivery

An establishment which has overseas business interests and whose financial year begins on the first day of the Year ( 1st January) , an extension of 3 months can be claimed. Form 244 has o be submitted to the Companies House before the final date of delivery. The action has to be repeated every year, because it doesn’t get applied automatically. Companies having a different date on which their financial year begins cant avail this service. But they can extend the date of accounts filing by making an application to the Secretary of State for Business, Enterprise and Regulatory Reform.

Late Fine

The companies have to pay a late fine failing to deliver the accounts within the stipulated time. The fine amount depends on how late the accounts reach the Registrar’s office and whether it’s a public or private organization.

All accounts of a company have to be signed and authorised by the Board of Directors before submitting them to the Registrar’s office.