What Are Statutory Accounts? A Friendly Guide for Company Directors

If you run a UK company, understanding statutory accounts is essential. Not just to keep HMRC and Companies House happy, but also to stay in control of your company’s financial health.

FHP accounting is here to explain what statutory accounts are, who needs to file them and how to prepare them without losing your sanity.

What Are Statutory Accounts?

Statutory accounts might sound intimidating, but they’re really just your company’s official financial report card.

They’ve been around for over a century (long before spreadsheets or cloud accounting!) and today they’re filed online with Companies House.

You might also hear them called financial accounts or annual accounts, they all mean the same thing.

Essentially, statutory accounts:

  • Show your company’s profits and losses
  • List your assets and liabilities
  • Reveal your shareholders’ equity

These accounts are submitted to Companies House and used by HMRC, investors and other stakeholders, even that nosey competitor who wants a peek at how your business is doing!

In short, statutory accounts are your legally required summary of your company’s financial performance for the year.

Who Needs to File Statutory Accounts?

Every limited company in the UK must file statutory accounts, whether private, public or even Crown-owned companies. As a director, you’re responsible for ensuring your company’s accounts are accurate, complete and submitted on time.

If you’re a small company, you can often submit simplified accounts, but skipping or delaying this responsibility can lead to fines, penalties and even damage your company’s reputation.

How to Prepare Statutory Accounts

Preparing statutory accounts doesn’t have to be stressful. Follow these simple steps:

1. Gather Your Financial Records

Collect invoices, receipts, bank statements, payroll data and your previous year’s accounts.

2. Prepare a Trial Balance

This ensures your debits equal your credits, confirming your books are balanced.

3. Make Adjustments

Include items like accruals, depreciation, and any other year-end adjustments.

4. Draft the Financial Statements

Your statutory accounts typically include:

  • Balance Sheet - What you own (assets) vs what you owe (liabilities) + shareholder equity
  • Profit & Loss Account - Your income, expenses and overall profit or loss
  • Notes to the Accounts - Explanations of key figures or accounting methods
  • Directors’ and Audit Report - Required for some companies

Tip: Using accounting software such as Xero, or hiring a professional accountant, can save time and reduce errors.

Common Mistakes to Avoid

Even experienced directors make mistakes. Some of the most common include:

  • Missing or incomplete transactions
  • Misclassifying income or expenses
  • Filing late
  • Confusion over director loan accounts or asset revaluations

Late filing can result in hefty fines and repeated mistakes can even lead to personal liability for directors, so it’s worth getting it right the first time.

Key Deadlines - Statutory Accounts

  • Private companies: 9 months after financial year-end
  • Public companies: 6 months after financial year-end

Start early! Preparing accounts last-minute only adds unnecessary stress.

How FHP Accounting Can Help With Your Statutory Accounts

At FHP Accounting Services, we go beyond simply preparing statutory accounts for Companies House. We dig into your financial data to ensure accuracy, compliance and peace of mind.

Here’s how we help:

1. Access and Review Your Accounts

Once you’ve finished posting all transactions for your financial year, we securely access your accounting software (or spreadsheets).

2. Check Bank Balances

We verify that your accounting bank balance matches your actual bank balance, avoiding surprises later.

3. Adjustments and Accuracy Checks

We review your accounts for accruals, prepayments, inconsistencies and note any non-tax-deductible items ready for your corporation tax return.

4. Internal Consistency Review

By comparing your current and previous years, we spot unusual balances, missing transactions or potential issues early.

5. Advice and Insights

We often uncover ways to save time, reduce costs and improve financial processes while reviewing your data. Our aim is to make your accounts work for you, not just meet legal requirements.

6. Flexible Software Support

Already using accounting software? Perfect.
Still using spreadsheets? That’s fine too.
Thinking about switching? We’ll guide you when the time’s right, without pushing unnecessary changes.

At FHP, our approach is personalised, transparent and tailored to your business. Whether you’re a small start-up or a growing company, we make statutory accounts straightforward, accurate and stress-free.

FAQs About Statutory Accounts

Can small companies submit simplified accounts?

Yes! If your company qualifies, you can file abbreviated accounts, though statutory rules still apply.

What counts as a small company?

If you meet two of these three criteria, you’re classed as small:

  • Turnover under £15 million
  • Balance sheet total under £7.5 million
  • 50 or fewer employees

(Always check with your accountant or HMRC for the latest thresholds.)

What’s a micro-entity?

If you meet two or more of these:

  • Turnover under £1 million
  • Balance sheet total under £500,000
  • 10 or fewer employees

Do I need an accountant to prepare statutory accounts?

Not legally, but working with an accountant ensures accuracy, compliance and peace of mind.

What happens if I miss the filing deadline?

Companies House fines increase the longer you delay and can harm your company’s credit rating.

 

Statutory accounts vs management accounts - what’s the difference?

  • Statutory accounts: Legally required, formal and filed publicly.
  • Management accounts: Internal reports, flexible, used for decision-making.

In short: Statutory = compliance. Management = business insight.

Take the Stress Out of Statutory Accounts

Filing and preparing statutory accounts doesn’t need to be daunting.

At FHP Accounting Services, we’ll handle your year-end accounts, keep you compliant with deadlines, and give you confidence in your company’s finances.

Contact FHP Accounting Services today and let us take the worry out of statutory accounts.