FKINP Before handing over records, a UK private company should agree what it must reconcile, what the accountant will adjust or review, which accounts and tax work are included, and who approves, signs and submits each document.
Set the reporting basis before handing over records
Confirm the accounting period, company-size category, reporting framework, disclosure choices and audit position. Periods are commonly 12 months, but they may be shortened or, subject to limits, extended to 18 months; first accounts can cover more than 12 months.[2][3][7]
BDO states that, for periods beginning on or after 6 April 2025, category assessment generally requires the company to meet at least two of three conditions in both the current and previous accounting year.[7]
- Micro: turnover up to £1 million, balance-sheet total up to £500,000 and no more than 10 employees.[1][7]
- Small: turnover up to £15 million, balance-sheet total up to £7.5 million and no more than 50 employees.[1][7]
- Medium (the band above small): BDO lists a higher ceiling of turnover up to £54 million, a balance-sheet total up to £27 million and no more than 250 employees.[7]
The £7.5 million and £27 million balance-sheet figures are ceilings for different size bands, not conflicting values for the same test.[1][7] GOV.UK states the micro and small limits as “any 2 of” the three conditions; the medium limits above come from BDO rather than the cited GOV.UK page.[1][7]
These are net thresholds; BDO says separate gross thresholds apply to group figures.[7] Agree the reporting framework independently of the size label. The FRC identifies FRS 105 for eligible micro-entities, FRS 102 Section 1A for eligible small entities, and full FRS 102. Qualifying entities may instead be eligible for FRS 102’s reduced disclosures or FRS 101, which applies adopted IFRS recognition and measurement with specified disclosure exemptions. Eligibility conditions matter; these options are not available to every company. UK-adopted IFRS is a further reporting basis where required or chosen as permitted.[8] Record the selected basis and disclosure regime in the engagement.
The principal Periodic Review 2024 amendments apply for accounting periods beginning on or after 1 January 2026, as the FRC confirms.[9] The accountant should identify the amendments and transition work relevant to the chosen framework and period, including any provisions with different effective dates. Do not decide applicability from the filing date alone.
Statutory accounts include a balance sheet, profit and loss account, notes and a director’s report unless the company is a micro-entity; an auditor’s report may also be required.[1] Small companies may qualify for audit exemption, omit the director’s report and profit and loss account from the Companies House copy, or submit abridged accounts, subject to eligibility.[1] Abridged accounts require agreement from all company members.[1]
The engagement should distinguish the full statutory accounts from the version filed at Companies House and treat accounts preparation and audit as separate services.
Build the company-side closing pack
Mark each closing task as either company-completed or outsourced. The engagement should not assume the accountant will repair unexplained balances within the standard accounts-preparation fee.
- Cash and payment accounts: reconcile each current, savings, deposit, foreign-currency, credit-card and online-payment account to its year-end statement. Investigate duplicates, missing receipts, charges, personal transactions, transfer errors, outstanding items, opening-balance differences and foreign-exchange differences.[2]
- Sales and customer balances: match sales to invoices, tills, ecommerce systems, payment processors and bank receipts. Document platform deductions such as fees, commission, advertising, refunds, delivery and processing charges, and flag overdue, disputed or potentially irrecoverable invoices.[2]
- Purchases and cut-off: reconcile supplier statements, unpaid bills and credit notes, then identify goods or services received and expenses incurred but not yet invoiced.[2]
- Year-end schedules: prepare accruals and prepayments, stock and work-in-progress quantities and valuations, fixed-asset additions and disposals, and evidence for loans, hire purchase, grants, funding and unusual transactions.[2][4]
- Payroll and VAT: reconcile payroll, PAYE, National Insurance, pensions and benefits to the ledger and HMRC records. Match VAT returns and payments or refunds to the VAT control account.[2][3]
- Directors and dividends: explain funds introduced or withdrawn, personal costs and expenses paid personally. Support dividends with dates, amounts, shareholders, vouchers, resolutions, payments and evidence of sufficient distributable profits.[2][6]
Include the underlying invoices, receipts, statements, payroll reports, VAT information, tax correspondence and transaction evidence.[4]
Define what the accountant will calculate or review
Separate bookkeeping repair from year-end adjustments in the quote. For each item, state whether the company supplies the schedule and whether the accountant will calculate, post, review or report unresolved issues.
- Adjustments: allocate responsibility for cut-off, bad-debt and recoverability adjustments, accruals, prepayments, stock valuation, depreciation, director transactions, dividends and VAT corrections.[2]
- Fixed assets: treat accounting depreciation and tax capital allowances as separate workstreams. Specify who updates the asset register, checks invoices and finance records, calculates each amount and posts the entries.[2]
- Corporation Tax: state whether the fee includes the tax computation, its review and preparation of the Company Tax Return.[2]
- Statutory statements: specify the balance sheet, profit and loss account, notes and any required director’s or auditor’s report.[1]
Require approval before additional bookkeeping repairs, missing-schedule reconstruction, revised-record work or out-of-scope tax services begin. The quote should state included allowances and additional-work rates.
Assign review, approval and signature
Give each stage a named owner and completion record:
- Records preparation — company finance lead: completed handover checklist and supporting schedules.[2][4]
- Reconciliations — company bookkeeper or finance lead: completed bank, customer, supplier, payroll, VAT and director’s-loan reconciliations.[2][3]
- Adjustments and drafting — named accountant: adjustment schedule and draft accounts, limited to the work included in the engagement.[2]
- Technical review — named reviewer: cleared review points and an issue log for questions referred to management.
- Director review — named director: documented responses covering profit, cash, tax payable, customer balances, borrowings and director’s-loan balances.[3]
- Board approval and signature — board and signing director: retained approval record and final signed accounts. The balance sheet must show a director’s name and be signed by a director.[1]
- Submission — authorised filer: filing confirmation or acceptance receipt for each submission.[1][3]
External preparation should not replace substantive director review of the draft accounts.[3]
Assign Companies House and HMRC handoffs
Record a named owner and the applicable deadline for each handoff:
- Companies House accounts: who prepares, reviews, approves, signs and submits them.
- Company Tax Return: who prepares, reviews, approves and submits the return and accompanying accounts.
- Corporation Tax: who authorises payment and confirms it has been made.
- Distribution: who supplies the statutory accounts to shareholders and anyone entitled to attend general meetings.[1]
Statutory accounts are also supplied to Companies House and to HMRC as part of the Company Tax Return.[1] Keep the Companies House filing, Company Tax Return and Corporation Tax payment dates separate. If the first financial year exceeds 12 months, ask the accountant to confirm whether two Company Tax Returns are needed.[2][5]
Close the file only after recording what was submitted, when, by whom and under whose authority.
Compare statutory accounts preparation providers
The following service descriptions are provider claims, not independent evidence of quality, outcomes or value.[2][3][4][6]
AccountancyNet Ltd
- Stated service scope: company accounts, tax returns, bookkeeping, payroll, VAT and wider compliance services.[2]
- Stated location: Manchester, serving England and Wales.[2]
- Commercial transparency: unknown from the cited page; use the common confirmation list below.[2]
Coombs Chartered Accountants
- Stated service scope: helping Manchester business owners plan year-end compliance and file accounts, with explanations during the process.[3]
- Stated location: Manchester is the named service area.[3]
- Commercial transparency: unknown from the cited page; use the common confirmation list below.[3]
THP
- Stated service scope: annual accounts, checks of accounting records and Corporation Tax returns.[4]
- Stated location: contact locations in Wanstead, Sutton, Chelmsford and Saffron Walden.[4]
- Commercial transparency: unknown from the cited page; use the common confirmation list below.[4]
Short And Sons Accountants
- Stated service scope: converting boxed records or an incomplete software file into accounts and a plan.[6]
- Stated location: clients around Staines, London and “further afield”; the wider area is not defined.[6]
- Commercial transparency: unknown from the cited page; use the common confirmation list below.[6]
What to confirm with each provider
Send each candidate the same brief: accounting period, entity and group status, reporting framework, intended exemptions, possible audit requirement, condition of the records and required Corporation Tax work.[1][5][7]
The cited pages for AccountancyNet, Coombs, THP and Short And Sons do not confirm the following terms.[2][3][4][6]
- Price: quoted fee, VAT treatment and additional-work rates.
- Package limits: included records, transactions, reconciliations, adjustments and tax work.
- Timing: turnaround assumptions, information cut-off dates and service commitments.
- Contract: length, renewal, cancellation and refund terms.
- Eligibility and coverage: formal client criteria and support outside the stated locations.
- Delivery: who performs and reviews the work, how technical questions are escalated and who submits each filing.
Compare providers using the same scope and handoffs. Do not appoint one until the engagement identifies the owners of draft approval, Companies House filing, Company Tax Return submission and Corporation Tax payment authorisation.[1][3]
References
- Prepare annual accounts for a private limited company: Overview – GOV.UK (gov.uk)
- Year-End Accounts Checklist for Small Limited Companies (accountancynet.co.uk)
- When Do Companies File Accounts? UK Deadlines | Coombs Chartered Accountants (coombscharteredaccountants.co.uk)
- Year-end accounts preparation: what your accountant needs (thp.co.uk)
- Preparing annual accounts for your limited company (qualitycompanyformations.co.uk)
- Year End Accounts Checklist UK for Small Businesses (shortandsons.co.uk)
- Accountancy processes: Statutory accounting requirements – BDO (bdo.co.uk)
- FRC — Overview of the financial reporting framework (March 2025) (frc.org.uk)
- FRC — FRS 102 preparers and Periodic Review 2024 effective date (13 April 2026) (frc.org.uk)
