The Accounts
The Accounts
The format of your annual accounts is also a matter of choice. The layout should be decided at the outset, and Penn Accounts will give you
the best advice to ensure that the format is the most tax effective for you and your business.
Your annual accounts typically included :-
Trading , Profit and Loss Account
This sets out the trading results for the year, with a comparative column for the previous year. It is split between the trading account (which shows the
gross profit) and the profit and loss account (which show the net profit or loss)
Balance Sheet
This summarises the assets and liabilities of your business at the year end date, with a statement showing how the net assets have been financed.
Notes to the Accounts
Although self explanatory, there are statutory and professional regulations which determine the disclosure requirements of your accounts. We use
the notes pages to ensure that you have fully complied with these requirements.
Accountants Report
Even though your business may not require a statutory (legal) audit, accounts prepared by a firm of accountants will include this Accountants Report.
It is, in fact, a stamp of approval which confirms the accuracy of your accounts based upon the information that you have provided. In
simple terms, this is the accountant's seal of approval.
Certificate of approval
This is signed by you, or signed by you on behalf of your partners. This is your seal of approval. This is most important, since the accounts are your
accounts, although we have prepared them.