Professional timely accounts and financial statements are required for a wide range of reasons. As well as forming the basis of most business tax computations, financial statements have the benefit of being used for the following reasons:
- To identify general business profit and loss over a period of time
- Comparison of profits from year to year
- Gross and net margin analysis
- Identification of fraud, internal and external
- Better directorship and management of your business
- For finance purposes
- Motivational factors
- For setting targets
Accounts are often overlooked by many self-employed people and can sometimes be viewed as unnecessary. By seeing what expenditure you have suffered over the course of the year in black and white, the results can be surprising. For example, your administrative costs maybe costing you more than you had initially thought, or your margins are being reduced year on year. Unless you have properly prepared annual accounts, changes in expenditure and income can go unnoticed.
Why Quick Rebates?
Wide Industry Knowledge
Decades of Experience
As a sole trader or partnership, there is no formal need for you to require accountancy services for the preparation of your Tax return. But the advantages of having professional prepared accounts far outweigh the advantages of not having financial statements to hand. During the preparation of your Tax return, depending on your level of income, you may be required to declare your profit and loss in more detail.
For limited companies, although Companies House only require abbreviated accounts, the story is different with HMRC. When submitting your annual Corporation Tax return, you are formally required to attach a copy of the company’s full financial statements. These accounts are also to be prepared in accordance with accounting frameworks, such as GAAP (Generally Accepted Accounting Principles) or FRS (Financial Reporting Standards).
How Long Will It Take?
This all depends on the quality of bookkeeping and the completeness of information supplied. For simple businesses with complete and up-to-date records, within one week. For more complicated organisations, or for entities with incomplete financial records, this can take longer.
What Information Is Required?
As much information as possible! Electronic records if available, otherwise copies of bank statements together with sales and purchase invoices. The more information we have, the better.
Do You Cover Multiple Periods?
Yes, if you find yourself behind with your accounts, we would happily prepare the historic accounts and financial statements on your behalf.
What Does It Cost?
This very much depends on the complexity of your business and what records are kept. We encourage our clients to maintain electronic records when available which minimises costs. We would advise you to get in touch for a direct quotation.
Good record keeping is essential for good financial management and control. Without proper bookmaking measures, it can be easy to lose track of expenses, debt, and what your business is owed in.
Keeping proper records also assists various year end procedures, such as preparation of your financial statements and Tax returns. It can be sometimes be difficult to remember the details of a particular transaction six months ago, which is why income and expenses should be recorded at least on a weekly basis.