Every company has to prepare annual accounts to be submitted to Companies House within nine months of the end of the financial year.
Recently the financial reporting rules have changed and “micro entities” (companies with a turnover under £632k and with 10 employees or less) can take advantage of producing very simple annual accounts.
Complete and accurate bookkeeping should take place continuously in your business and each month or quarter a set of management accounts should produced that show you how your business is performing.
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The annual accounts are then very easy to produce – essentially they’re the twelfth set of monthly management accounts re-organised slightly for submission to Companies House.