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Small company accounts and Companies House

Small company accounts and Companies House
Monday, November 06, 2017

At the end of every financial year, Panthera submits your company’s accounts to Companies House and, as with all limited firms, your records become public record.

 

There are two types of accounts that cover small businesses. In this article, we look at both types and the differences between them.

 

Micro-entity company accounts

 

We’ll file micro-entity company accounts for your company if two or more of the following three describe your business:

 

• your turnover less than £632,000

• your balance sheet is shows less than £316,000 in net assets

• your average employee number throughout the accounting period was never more than ten

 

If this is you, we prepare a balance sheet with much less information on it than every other type of company. There’s no need to file a directors’ report. In addition, you don’t have to show any profit or loss figures.

 

In your first year of trading, you’ll be classed as a micro-entity unless, during that year, you no longer meet two of the three criteria laid out. Going forward, you will be classed as a micro-entity only if you met two of the three conditions in that accounting period and the year beforehand.

 

If your business was classed as a micro-entity in one financial year but in the following year did not qualify, you’re still allowed to submit micro-entity accounts the following year. If, in the year after that, you qualify again as a micro-entity, you can carry on filing as a micro-entity.

 

When we prepare your micro-entity company accounts

 

The version we give you to keep is a lot different from the one we send to Companies House.

 

We’ll prepare a compliant balance sheet (with a statement of compliance which will need your signature), a directors’ report (which is another statement of compliance with financial and accounting standards), a compliant profit and loss, and notes to the account.

 

There is also the provision to file an auditors’ report but we’ll more likely than not claim exemption from that for you.

 

Which types of companies can’t file micro-entity accounts?

 

Limited partnerships, public limited companies, overseas companies, sole traders, partnerships, and companies set up for a charitable purpose.

 

Small company accounts

 

For small companies, two of the three following criteria need to be met:

 

• your turnover is no greater than £10.2 million

• your balance sheet must not show more than £5.1m in assets

• during the accounting period, you must not have employed, on average, 51 or more staff.

 

For small companies, we’ll prepare for you a profit and loss account, a balance sheet (which you or one of your fellow directors must sign on behalf of all the directors), notes to the account, and a directors’ report.

 

If you meet two of the conditions above, we won’t need to audit your accounts.

 

What we deliver to Companies House is different. We sent them abridged accounts, assuming that you and all of your fellow directors agree.

 

With abridged accounts, we don’t need to include certain items on your profit and loss account and we don’t need to provide a split of debtors and creditors. Most of our clients prefer this as they consider it sensitive financial information that they don’t want their competitors to know about. We also don’t have to provide itemised analysis of trade debtors, other debtors and any prepayments.

 

I have a group of small companies. Can they qualify for small company accounts?

 

For small companies, you can file them under the small company umbrella if the turnover, level of assets, and average employee number matches the requirements for small company accounts.

 

Small company accounts – talk to Panthera

 

Looking for advice? Please call Panthera on 01235 768 561 or email the team at enquiries@pantheraaccounting.co.uk.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

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The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

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We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

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I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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