How to Submit Company Accounts for a Small Business
Are you worried about handling bank statements? Or do you not know the recommended way to file your small business accounts?
Owning a small business in the UK is an exciting adventure. However, submitting the annual company accounts can quickly make the excitement a headache.
More than 223,640 companies missed the accounts deadline 2018 and suffered a late filing penalty. Moreover, an additional 634 narrowly avoided penalties.
Understanding the filing requirements, including maintaining accurate financial records and properly classifying expenses, can be stressful for small business owners.
This step-by-step guide helps you file micro-entity accounts for your small business.
Steps To Submit Company Accounts for a Small Business (The Stressful Way)
For a small business, you get a break with a simplified micro-entity filling process. If your company meets the two criteria below, it will be classified as a small business.
- Turnover: Not more than £632,000
- Balance sheet total: Not more than £316,000
- Employees: Not more than 10
Follow the step-by-step guide to submit your micro-entity accounts.
Step 1: Gather Your Financial Records
Get organised and collect all your business’s financial records for the accounting period. Here’s a checklist to help you stay on track:
- Bank Statements: Gather statements for all your business accounts.
- Sales Invoices: Record all your income from sales of products or services.
- Purchase Receipts: Track your business expenses with receipts
- Other Supporting Documents: Consider additional documents like payroll records or loan agreements.
The more organised you are here, the smoother the filing process.
Step 2: Prepare Your Balance Sheet
The balance sheet is the snapshot of your business at a specific date, typically the last day of your accounting period. Therefore, your balance sheet should clearly show three things.
- Assets: Everything your business owns
- Current Assets: Cash readily available, inventory, prepaid expenses like rent or insurance
- Non-current assets: Fixed assets like equipment, property, or investments
- Liabilities: What your business owes. Make a list that includes:
- Current Liabilities: Short-term debts like accounts payable, money owed to suppliers, or taxes payable.
- Long-Term Liabilities: Long-term debts like loans or mortgages.
- Capital: The difference between your assets and liabilities, essentially your net worth.
Step 3: File Your Accounts Online
With all the paperwork prepared, you can submit your accounts electronically. If you are filing for the first time, you need to create an account with Companies House WebFiling. Before getting started, you need to make sure of a few things.
For Companies House
- Get a Company Registration number
- A 6-digit Authentication Code you receive via post.
For HMRC
- Get registered with HMRC for Government Gateway ID.
- Link your corporation tax account with the created login.
Step 4: Select “Micro Entity Accounts” During Filing
Once you’ve logged in to the WebFiling service, look for a section or option labelled:
- Type of Accounts
- Choose Micro Entity Accounts
Upon selecting the option, the filing process will be ensured to be tailored to the specific requirements for micro-entity submissions.
Step 5: Review and Submit
Don’t get intrigued by the “submit” button; carefully review it and ensure smooth and error-free filing.
Don’t let the “submit” button intimidate you! Use the checklist below to ensure a smooth and error-free filing process.
- Double-check your entries
- Focus on accuracy
- Pay attention to formatting (Number & Date formats)
- Save your work regularly
Filing your annual accounts doesn’t have to be a stressful experience. Following the steps in this guide and staying organised can ensure a smooth and error-free submission.
Mistakes Businesses Make with Their Small Business Accounts
- Unable to Submit Statutory Accounts: Dormant companies think they are no longer bound to submit statutory accounts, which eventually results in deadlines and penalties.
- Overdrawn Loan Account: Habitual withdrawal of money from limited accounts leads to tax implications of section 455.
- Neglecting Tax Advantages: Businesses overlook that expenses like company formation are claimable as per pre-trading expenditures, saving them money.
33% of businesses lose money by making accounting mistakes. See how to avoid common pitfalls and save your company tons of money.
How to Submit Your Company Account The Easy Way (and Keep More Profits)
Submitting your limited company accounts has never been easier. Also, you can put more profit back into your business by contacting 01618040808 or Get a Quote online.
