Accounting, Taxation and Business Planning
'Whether you're a sole trader just starting or an established limited company looking for ongoing support, we’re here to help'
UNDERSTANDING FINANCIAL STATEMENTS:
What Are Accounting Services?
Accounting services are essential for keeping track of your business’s financial performance. These services help you maintain accurate records, manage cash flow, prepare for tax filings, and ensure you comply with the legal obligations set by tax authorities. Our accounting services cover various aspects of financial management, including:
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Tax preparation and filing (corporate and personal taxes)
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Financial statements (such as profit and loss statements and balance sheets)
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Cash flow management
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General bookkeeping and record keeping
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Advisory services (to help you make informed financial decisions)
Our team works closely with clients to ensure that their financial records are in order, that taxes are filed accurately and on time, and that they meet all their legal obligations—whether as a sole trader or a company.
What Are Financial Statements?
Financial statements are essential documents that provide a clear snapshot of your business’s financial health. They are required for tax filings, compliance, and reporting purposes, but they also offer valuable insights into how your business is performing. Understanding these statements can help guide strategic decisions, manage growth, and improve profitability.
The two most important financial statements are:
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Statement of Profit and Loss (Income Statement)
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Statement of Financial Position (Balance Sheet)
1. Statement of Profit and Loss (Income Statement):
The Statement of Profit and Loss, also known as the Income Statement, shows how much money your business made (revenues) and how much it spent (expenses) over a specific period (typically a month, quarter, or year).
The result is either a profit or a loss, and this statement is key to understanding your business’s profitability.
2. Statement of Financial Position (Balance Sheet):
The Statement of Financial Position, or Balance Sheet, provides a snapshot of your business’s financial position at a specific point in time. It lists the company’s assets, liabilities, and equity.
This means that everything your business owns (assets) is either financed by debt (liabilities) or by the owner’s investment (equity).
How Can We Help?
We provide expert assistance in preparing your financial statements to ensure accuracy, compliance, and business growth. Here’s how we can help:
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Prepare Your Financial Statements for the Year: We assist in preparing your Statement of Profit and Loss (Income Statement) and Statement of Financial Position (Balance Sheet) for the year, ensuring they reflect the true financial health of your business.
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Ensure Compliance with Accounting Standards: Our team ensures that your financial statements comply with the relevant accounting standards and legal requirements, whether you’re a sole trader or a limited company.
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Accurate and Timely Reporting: We meticulously review your business’s financial data to ensure accuracy and timeliness, giving you peace of mind that your filings are correct and submitted on time.
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Tailored Financial Insights: We provide you with clear, detailed financial reports that are tailored to your business, helping you understand your profits, losses, assets, and liabilities.
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Support with Financial Decision-Making: By preparing comprehensive financial statements, we help you make informed decisions for future growth, investment, and cost management.
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Streamlined Process: We handle all aspects of the financial statement preparation, freeing up your time to focus on running your business.
Get Started Today!
Whether you're a sole trader just starting or an established limited company looking for ongoing support, we’re here to help. Our team is dedicated to ensuring your business’s finances are well-managed, compliant, and positioned for success.
Contact us today to discuss how our accounting services can support your business and ensure you're meeting all your legal obligations.
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What is self-assessment?Self-assessment is a system or regime by which Her Majesty’s Revenue & Customs (HMRC) assesses and collects direct tax in the UK.
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Should I complete a self-assessment tax return?Most people who pay income tax in the UK do not have to complete self-assessment tax returns. These are primarily employees whose tax is deducted at source under the Pay as you Earn system (PAYE). Self-assessment therefore applies to individuals such as the self-employed (sole traders) who earn in excess of £1,000, landlords that receive rental property income, individuals who receive income from savings, investments and dividends, foreign income, income from tips and commission and any other type of untaxed earnings.
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When are self-assessment tax returns due?The UK tax year starts on 6 April each year and ends on 5 April of the following year. Self assessment returns are due on the 31 January following the end of the tax year. For individuals who wish to submit paper returns, the deadline is 31 October following the end of the tax year.
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What are payments on account?Payments on account are amounts that some individuals are required to pay towards their estimated tax liability for the current tax year. They are calculated based on the previous tax years liability and are paid in two equal instalments of 50% each on the 31st January and the 31st July. These amounts are then deducted from the final liability for the year and a balance payment is usually made, together with a first payment on account for the following tax year.
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How do I get the ball rolling?As a starting point, you would need to register with HMRC in order to receive your 10 digit Unique Tax Payer Reference number (UTR). This number will enable you to submit your tax returns online by the 31st January deadline. If you are completing your own tax return, you would need to create an online account with HMRC once you receive your UTR number. Alternatively, if you need to help and support with getting your tax affairs complete and up to date then please get in touch for your free consultation.