Statutory Accounts: What are they?

Statutory accounts, sometimes known as "Annual Accounts" or "Year-End Accounts," are mandated by law for all limited corporations in the United Kingdom. Within nine months after the conclusion of your company's fiscal year, they must be turned in to Companies House.
Although producing these accounts is typically easier for small organisations than for bigger ones, accuracy and compliance are still crucial.

What Does Statutory Accounting Include?

The balance sheet: An overview of the financial situation of
your business at year's end.
Statement of Profit and Loss: An overview of your earnings,
outlays, and profit.
Observations Regarding the Accounts: Extra information that clarifies stuff in the accounts.
The Director's Report: A comment about the company's performance from the director or directors.
Reports from accountants or auditors: An expert evaluation
|of the company's compliance and accounting.

Criteria for small companies

A company is classified as a small business if it meets two of the following criteria:

• Turnover of less than £10.2 million

• Balance sheet total of up to £5.1 million

• Fewer than 50 employees

As a small business, you may submit abridged financial statements to Companies House. Additionally, you can provide a director’s report, a profit and loss account, and decide whether or not to have your accounts audited.

Criteria for Micro-Entities

If a business satisfies two or more of the following requirements, it is categorised as a micro-entity:

• You have a turnover lower than £632,000

• Your balance sheet shows a maximum of £316,000 or less

• You have 10 employees or less

Simplified reporting requirements are advantageous for micro-entities. You can submit simple balance sheets to Companies House without having to compile complicated accounts. Micro-entities are eligible for the same exemptions as small businesses.