One reason for keeping day-to-day accounting records of your business activity is that the culmination and summarisation of all this financial activity result in the year-end accounts.
Year-end accounts are important for many reasons. They are a basis for determining the profitability of the business. This is then used to assess the tax liability of the business. They are also used to provide statutory information required by Companies House if your business is run through a Limited Company.
Year-end accounts will also provide information to be submitted on self-assessment tax return forms. These are often required by financial institutions such as banks. They use this information to continue to provide banking facilities necessary for your business to operate.
As a business proprietor, you will have to choose a date to mark the year-end of your business and create a year-end cut off for subsequent years. A Certax Accountant can provide you with advice and guidance on this which will have an effect on the timing of certain tax liabilities and also determine submission dates to Companies House.
Please contact your local Certax Accountant for more information.