What It Is and Why It Matters
Accounts preparation is the process of gathering, reviewing, and finalising a business’s financial records to produce a clear picture of its financial health over a specific period. These records typically include profit and loss accounts, balance sheets, and supporting notes. Whether you’re a sole trader, partnership, or limited company, having properly prepared accounts isn’t just good practice — it’s a legal and financial necessity.
Legal Obligations for Annual Accounts
Limited companies must prepare and file annual accounts with Companies House and submit a tax return to HMRC. These accounts must follow specific formats (statutory accounts) and meet deadlines, usually within 9 months of the financial year-end.
Sole traders and partnerships aren’t required to file accounts with Companies House but must report accurate figures in their self-assessment or partnership tax returns. Reliable accounts help ensure you’re taxed correctly and stay compliant.
Statutory Accounts vs. Management Accounts
- Statutory accounts: Prepared annually, filed with Companies House and HMRC. They follow strict legal requirements and provide a snapshot of a business’s financial position.
- Management accounts: Created monthly or quarterly for internal use. They help business owners track performance, manage cash flow, and make informed decisions throughout the year.
Both are essential, but for different reasons: statutory accounts keep you compliant, management accounts keep you in control.
Why Timely and Accurate Accounts Matter
Up-to-date, reliable accounts help you:
- Plan for tax bills and avoid surprises.
- Understand your cash flow and profitability.
- Make confident decisions about investment, staffing, and growth.
- Secure finance, mortgages, or business loans with accurate supporting documents.
- Stay compliant with HMRC and Companies House deadlines, avoiding penalties.
Year-End Processes and Key Deadlines
At the end of a financial year, businesses must:
- Finalise all transactions.
- Review and adjust ledgers.
- Prepare draft accounts.
- Submit statutory accounts and tax returns.
Key deadlines:
- Limited companies: accounts filed within 9 months of year-end.
- Corporation tax return: within 12 months of year-end.
- Sole traders and partnerships: tax returns by 31 January after the tax year.
How Park Lane Ensures Compliance
At Park Lane, we manage every stage of accounts preparation, ensuring clients:
- Meet statutory deadlines.
- Comply with Companies House and HMRC regulations.
- Stay informed with proactive reminders and advice.
- Use accounting software efficiently, reducing admin and errors.
We handle the heavy lifting, so clients can focus on running their business.
Common Accounting Software and How Clients Provide Records
We work with leading cloud-based software like Xero, QuickBooks, and Sage. These platforms simplify record-keeping and allow clients to:
- Upload invoices and receipts.
- Track expenses.
- Share financial data securely in real time.
For those using spreadsheets or paper records, we offer guidance to help transition to digital systems or handle manual records with care.
How Accounts Preparation Supports Loan and Mortgage Applications
When applying for a business loan or mortgage, lenders often request:
- Up-to-date statutory accounts.
- Recent management accounts.
- Tax returns and supporting financial records.
Accurate, well-prepared accounts show lenders your business is financially healthy and reliable, improving your chances of approval and better rates.
Understanding your numbers by working with your accountant
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Understanding your finances?
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Keeping your records up to date?
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Meeting Deadlines?
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Contacting your accountant for help and advice?
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Growing your business systematically with confidence?
You know what to do
Dont get left behind - help is on hand
Technology is changing the way we do business and how accounts are kept. Soon the government will require many businesses to submit their tax information via the cloud. At Park Lane Accountants we want to make sure nobody gets left behind. We’ll introduce you to cloud accounting and help you implement the right tools for your business.
Package 1 - For Smaller Businesses
For your business
- Accounts & Tax Returns prepared and filed in good time (for Companies, Partnerships and Sole Traders)
- Companies House Annual Return prepared and filed if applicable
- Ongoing access to advice via your dedicated client manager
For you
- Your Personal Tax return prepared and filed in good time.
- Tax saving advice included
Key Features as standard
Access to a dedicated named client manager ensuring guidance and advice
Access to our secure online document vault to allow secure exchange of information
Fast onboarding and we deal with your old accountant
All services can be added or scaled and are flexible - pay for what you need and nothing else.
Package 2 - For Established Businesses
For your business
- Everything detailed in package 1 plus
- Bookkeeping - keep everything tidy and organised
- Payroll - keep everyone paid and happy knowing the complexities are covered
For You
- Your Personal Tax return prepared and filed in good time plus up to 3 sources of income including:-
- Rental Accounts
- Dividends
- Self Employment
- Employment
- Pensions
- Tax saving advice included
Key Features as standard
Access to a dedicated named client manager ensuring guidance and advice
Access to our secure online document vault to allow secure exchange of information
Fast onboarding and we deal with your old accountant
All services can be added or scaled and are flexible - pay for what you need and nothing else.
Package 3 - For Businesses Insights and/or Growth
For your business
- Everything detailed in business package 2 plus
- Monthly or Quarterly Management Reports with a quarterly meeting either in our office or online live
- At least one planning session per year where we will look forward, set target and goal and measure progress.
- Ongoing business advice and insight to help you identify opportunities to grow and make more money.
For You
- Everything in package 2 plus mortgage references ioncluded as standard.
Key Features as standard
Access to a dedicated named client manager ensuring guidance and advice
Access to our secure online document vault to allow secure exchange of information
Fast onboarding and we deal with your old accountant
All services can be added or scaled and are flexible - pay for what you need and nothing else.
Peace of mind
Grow your business
Peace of mind
We are your local accountant - always
Based in the community, we understand local needs and are proud to support other small and growing businesses. That said our reach is far and we know that our clients value the relationship we hold above everything else.