Company accounts without the jargon

What company accounts are

Annual accounts report the company's financial position and performance for an accounting period. They are not the same as the company's Corporation Tax return, even though the work and deadlines are connected.

Build the evidence from day one

• Keep business banking separate and reconcile it regularly.
• Store sales invoices, purchase invoices, receipts, contracts and finance records.
• Record money paid to or by directors, including expenses and loans, correctly.
• Keep payroll, VAT and asset records where relevant.
• Retain evidence according to the current statutory rules.

Do this now

Confirm the company's accounting reference date and the live filing deadlines for its first and later accounts. Choose bookkeeping software or a process that your accountant can use. Decide who reviews transactions each week and who checks the year-end information.

What good looks like

The books reconcile to the bank, unusual transactions have explanations and supporting documents, and the accountant is not discovering major gaps close to the deadline. Directors receive and approve the accounts before filing.

Common mistakes

• Paying personal costs from the company without recording the treatment.
• Assuming a bank feed creates accurate bookkeeping by itself.
• Mixing the accounts deadline with the Corporation Tax payment or return deadline.
• Waiting until year end to find missing invoices and receipts.

When to get professional help

Most new directors benefit from agreeing the setup and timetable with an accountant early. Get specific advice for director loans, dividends, payroll, VAT, grants, stock, assets, overseas activity or previous errors.

Keep in your roadmap

Store the accounting reference date, internal handover date, official filing deadline and responsible person as separate fields.