2. What are year-end accounts?

In business, the year-end is defined as the end of a company’s financial year. Year-end accounts, therefore, are a summary of your business activities over a 12-month period. 

Statutory accounts must include: 

  • a ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year 
  • a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year 
  • notes about the accounts 
  • a director’s report (unless you’re a ‘micro-entity’) 

You might have to include an auditor’s report – this depends on the size of your company. 

During the year-end accounts process, you will also be required to prepare a Corporation Tax return.