Can I Prepare My Own Limited Company Accounts?

If you run a limited company, there is legislation around filing limited company accounts with Companies House. All companies must file some form of annual accounts with Companies House even if they are dormant or not trading.

You can prepare your own limited company accounts if you understand the rules and requirements. There’s no legal obligation to hire an accountant. However, the process involves detailed accounts preparation, accuracy, and knowledge of current tax laws, so mistakes can be costly if you’re unfamiliar with limited company accounting.

Many business owners ask, “Can I prepare my own accounts for a limited company?” While the answer is yes, it’s essential to consider the time, effort, and risk of errors. If you’re confident in handling accounting for a limited company, DIY may work. Otherwise, hiring a professional ensures compliance and avoids penalties.

What Are Annual Accounts?

Annual accounts are also referred to as ‘company accounts’, ‘statutory accounts’, or ‘financial statements’.

Your accounts will show your company’s financial activity over a set period, normally 12 months. They should contain information about a company’s transactions, operating performance, and financial position at the end of its financial year.

These records are a crucial part of accounting for a limited company, ensuring that financial obligations to HMRC and Companies House are met.

Do You Need an Accountant to Submit Limited Company Accounts?

No, you don’t legally need an accountant. You can choose to complete your own accounts, which include preparing and filing your limited company accounts, your company tax return, and other required documents after the financial year-end.

However, be aware that accounts preparation can be complex if you are not familiar with current legislation. Mistakes can result in penalties or incorrect tax filings, which could impact your business.

For this reason, many directors searching for "can I do my own accounts for a limited company" often realise it’s more cost-effective and time-saving to work with a professional accountant.

Who Do I Submit My Annual Accounts To?

You should provide your company accounts to:

• Companies House
• HMRC (as part of your company tax return)
• Shareholders & guarantors
• Anyone is entitled to attend annual general meetings

Full Statutory Accounts vs Abridged or Abbreviated Accounts

Small limited companies and micro-entities are not usually required to prepare full limited company accounts for Companies House. Instead, they can file abridged accounts, which are a summarised version.

Micro-Entity Accounts

You must meet at least 2 of the following criteria:

• Turnover is no more than £632,000
• Balance sheet total is no more than £316,000
• The average number of employees is no more than 10

Abridged Accounts

You must meet at least 2 of the following:

• Turnover is no more than £10.2 million
• Balance sheet total is no more than £5.1 million
• The average number of employees is no more than 50

Abridged accounts include the balance sheet and a reduced number of notes. They do not need to include a profit and loss account.

Dormant Company Accounts

A company is classified as ‘dormant’ by Companies House if it has had no significant accounting transactions during the accounting period. Even dormant companies must file annual accounts and confirmation statements each year.

What Financial Information is Required to Prepare Full Accounts?

To prepare full limited company accounts, you will need:

• A profit and loss account
• A balance sheet
• A director’s report
• Supporting notes about the accounts

If your company requires an audit (see criteria below), an auditor’s report will also be necessary.

Most small companies qualify for an audit exemption if they meet at least 2 of the following:

• Annual turnover of no more than £10.2 million
• Assets worth no more than £5.1 million
• 50 or fewer employees on average

Accounting Records Your Company Must Keep

To meet your limited company accounting obligations, you need up-to-date records for:

• Bank statements
• Business income and expenditure
• Goods and services bought or sold
• Company-owned assets and liabilities
• Money owed to/from the company
• Lease, mortgage, and loan agreements

Companies must keep all records for a minimum of 6 years from the end of the relevant financial year.

Benefits of an Accountant Preparing Your Limited Company Statutory Accounts

Accountants are experts in limited company accounting. They understand current legislation, deadlines, and tax reliefs, and can liaise with HMRC and Companies House on your behalf.

Using a qualified accountant can reduce the risk of errors, ensure compliance, and potentially save money through tax planning strategies and expense claims.

While the question “Can I prepare my own accounts for a limited company?” has a technical “yes” answer, the practicality and accuracy often benefit from professional support, especially as your business grows or becomes more complex.

Are Accountants Responsible for My Accounts?

Even when hiring an accountant, company directors remain legally responsible for the accuracy of submitted accounts. A good accountant will ensure the accounts are properly prepared based on the information you provide.

How to File Your Annual Accounts

Accounts must be filed online at Companies House after the end of your company’s financial year (the ‘Accounting Reference Date’ or ARD).

• Your first annual accounts are due within 21 months after incorporation
• Subsequent annual accounts must be submitted within 9 months after each ARD
• Accounts for Corporation Tax must be submitted to HMRC within 12 months of the accounting period end.

Summary

Whether you decide to prepare your own accounts or appoint an expert, understanding your obligations is critical. Accounting for limited company activity involves accuracy, organisation, and awareness of key deadlines.

Here at dns Accountants, we specialise in limited company accounting. Our expert team can help you remain compliant while optimising your tax position and reducing stress.

Need help preparing your limited company accounts or want to know if you can save on tax? Call us today on 03330606887 Email: enquiry@dnsaccountants.co.uk

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