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	Services Audit General & Business Advice Insolvency, bankruptcies & recoveries Financial Reporting Forensic Accounting IT Investment & Financial Advice - Business & Personal Business & Employee Taxation Personal & Family Taxation Consumer Tips				Company Accounts & Financial Reporting As a trading company you're legally obliged to prepare accounts so that your tax liabilities can be accurately calculated. Up-to-date and accurate accounts will also help you plan your business better. Accounts Preparation The reality for many small businesses is that they simply don't have time to keep on top of their finances, so usually employ an accountant to assist with their accounts preparation. If your accounts preparation isn't done correctly or on time, you could face a fine, which will be imposed by HM Revenue & Customs. Limited company accounts - as a limited company you are legally required to submit an annual return and annual accounts at the end of each accounting period. You will also have to complete an annual corporation tax return and pay the taxes due within 9 months of your company's year end. If you're in any doubt as to your obligation regarding limited company accounts, search our network now to find an accountant in your area who can help. Partnership & Sole Trader Accounts If your company is classified as an ordinary or general partnership then you don't have to file annual accounts with Companies House. There are some types of partnership that do have to submit accounts, so it's important to seek the advice of an accountant to clarify your position. Sole Trader Accounts As a sole trader you don't have to submit annual accounts to Companies House. However, you must complete an annual tax return so that your tax liability can be correctly calculated. If you fail to complete your sole trader tax return by the deadline set by HM Revenue & Customs, then you will face a fine. Audit Exemption Reports Formerly known as a compilation report, an audit exemption report must be drawn up by your accountant to verify that your company is exempt from having a statutory audit on account of its size and turnover. Financial reporting in the UK is governed by the Companies Act 1985 and any sole trader, business or partnership is obliged to keep a formal record of their financial activities for reporting purposes. Depending on your type of company, financial reporting can include the categories below; Balance sheet Profit & loss statement Retained earnings statement Cash flow statement Learn more about your financial reporting obligations by contacting a local accountant today. Subsidiaries & Overseas Companies If a company is established overseas and wants to set up a branch in the UK then this will need to be registered. Subsidiary company status is usually applied for once the branch of the overseas company is trading profitably in the UK. This subsidiary company will be incorporated as a private limited company in this country. International financial reporting standards (IFRS) form the global financial reporting framework adopted by the International Accounting Standards Board (IASB). The aim of these standards is to ensure a consistent approach to all financial reporting standards across the globe and well over 100 countries now have these in place, including the whole of Europe. Browse our UK accountant network now to find out more about IFRS. Financial reporting tip: If you're a small business or sole trader, make sure you keep all your receipts, invoices etc in the one place as you go through the year. If you don't keep everything together, it can be a very time consuming exercise at the end of each year to gather all the information your accountant needs.