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.
Our Service Packages are bundled for value.
They illustrate that we have an offering for every stage of the business lifecycle.
Our Fixed fee Micro Package for small companies from just £100 + VAT monthly
Aimed at small businesses with revenue of £90k per year or more
For Your Business
- Annual accounts prepared and filing
- Companies House Confirmation statement filed
- Corporate Tax Return prepared and filed
- Payroll processing & filing for Directors and employees
- Profit extraction advice & tax mitigation planning meeting annually
- Access to your businesses secure e-vault
- Accounting software available - Xero or Quickbooks
For You
- Personal Tax Return and computation submissions
- Payment reminders included for January & July
- Rental accounts, share dividends, interest all included.
- Access to your personal secure e-vault
Plus unlimited e-mail support only from your named accountant client manager.
Our Business Package starts from £150 + VAT monthly
Aimed at established businesses with revenues over £90k with an accounting system in place
For Your Business
- Everything in our Micro Package for your business Plus
- VAT check & filing quarterly
- Ongoing bookkeeping advice & assistance with reconciliations
- Pre year end meeting to identify tax saving opportunities and actions.
- Post year end review with full explanation of results
For You
- Everything in our Micro Package for you Plus
- Pre tax year end meeting to identify potential tax saving opportunities
- Review of profit extraction advice and "what if" scenario illustrations
- 2 accountants references for mortgage or loan applications included
Plus unlimited e-mail support & unlimited telephone support from your named accountant client manager.
Our Grow & Control package from £400 + VAT monthly
Aimed at established businesses with the desire to grow and have all the numbers to hand.
For Your Business
- Everything in our Business Package for your business Plus
- Our assistance with planning and budgeting for your business - if you are serious you need a plan!
- Our flagship bookkeeping service delivered by our experienced and fully trained bookkeepers.
- Monthly or Quarterly management accounts with comments and insights
- Quarterly review in person with your account manager - designed to identify key actions to improve or grow your business
For You
- Everything in our Business Package for you Plus
- Consultation on planning for business exit, sale, retirement or succession - a personal plan for you and your family.
Plus unlimited e-mail support & unlimited telephone support from a named accountant client manager.
Why Choose Park Lane Accountants
Friendly service
At Park Lane, we care about you and your business, and we’re always just a phone call or email away
Peace of mind
Our helpful, jargon-free approach takes the stress out of tax, bookkeeping, payroll, pensions and more
Grow your business
Using our experience and expertise, we can help you identify and capitalise on new opportunities
Modern tools
We use the latest cloud-based accounting software to keep your finances up-to-date, accessible and secure
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.