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Everything you want to know about Statutory Accounts

Statutory Accounts

Understanding more about your statutory accounts can be a bit challenging, especially if you don’t have a financial background. It is important to understand the basics of company accounts, no matter if you are an experienced business owner or a new entrepreneur settling down in the UK. Statutory accounts are like the crux, depicting how well your business is performing at that stage and at that time.

Here in this post, the focus is to help you comprehend and get clarity of the financials in your business. Do you know what is meant by company statutory accounts? They summarize the organization’s financial activity over the fiscal year or period of 12 months. Every year, the reports are prepared for limited company accounts information and submitted at Companies House and HM Revenue & Customs. The free statutory accounts information comprises of the following:

Aside from these, there are other financial terms as well to comprehend.

Liquidity Ratio = Current Assets/ Current Liabilities

If the ratio<1, it can be bad. How to evaluate the value of your business? Here NAV (Net Asset Value) helps and is the right answer. It is calculated as follows:

The NAV is expressed most of the time as the NAV per share. It is estimated as by taking NAV and then dividing it by the total number of shares in issue. If the NAV is higher than the share price, it might not be good and if it is less, it indicates that the market is expecting the company to make profits in the future.

The other key financials to understand include turnover, taxation, cost of sales, salaries, dividends, capital reserves and depreciation etc. It is a mandate to file at Companies House accounts information, and before you start, make sure to get your accounts approved by the company directors and then file them. At the end of the financial year, your private limited company must prepare to file a company tax return and statutory company accounts information with Companies House and HMRC.

At the end of the day, we all want our businesses to thrive and flourish. For business owners, entrepreneurs and investors, it means that having clarity of the enterprise through company accounts. DataGardener is an advanced business information platform helping professionals and business owners to look into the financials and company accounts data of organizations operating across different verticals. Feel free to apply the respective filter, be it industry type, financials, accounts category or anything else. And the platform is helping you in accessing information related to the following:

The statements can be downloaded for reference if required. Feel free to connect with the team for more details. The company accounts information can be rewarding in the long run, and in connecting with the right businesses to expand and grow.

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