Company Formation Specialists

Who Keeps The Accounts And
What Do They Comprise Of?

All limited and unlimited companies, whether or not they are trading, must keep accounting records.

Generally, a set of accounts must include:

• a profit and loss account (or income and expenditure account if the company is not trading for profit);
• a balance sheet signed by a director;
• an auditors' report signed by the auditor (if appropriate);
• a directors' report signed by a director or the secretary of the company;
• notes to the accounts; and
• group accounts (if appropriate).
  
  The Companies Act can provide further information on what these documents contain. Certain information may be omitted from the accounts of medium-sized and small (including very small and dormant) companies prepared under the special provisions of part VII of the Companies Act. These companies may further abbreviate the accounts they file at Companies. Very small companies and dormant companies may also be exempt from audit.

All limited and public limited companies must send their accounts to the Registrar. If they are eligible and wish to, medium-sized, small, very small and dormant companies may prepare and file 'abbreviated accounts' .

A company's first accounts cover the period starting on the date of incorporation, not the first day of trading. They end on the accounting reference date (ARD) or up to 7 days either side of that date. ARDs and how to change them are covered in our FAQs.

Subsequent accounts start on the day after the previous accounts ended. They finish on the ARD or up to 7 days either side of it. Top Of Page

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