Financial year end and reporting requirements
At the end of each financial year, your ‘books’ will be used by an accountant or bookkeeper to prepare an end-of-year summary of your accounts, often known as the financial statements. If your business is an LLP or a Limited Company, you’ll have to file a copy of your financial statements at Companies House, and the financial statements may need to be audited.
Many businesses do not need to have their accounts audited – for example sole traders and partnerships as well as small LLPs and limited companies (providing they have taken the necessary steps). A solicitor or an accountant will be able to advise you what the reporting obligations are for your particular business, what date is best to pick for your financial year end - and whether or not you need an audit. If your business is a small limited company or LLP they will also be able to help you decide whether or not you should opt out of annual audits, and how to pass the necessary resolutions of the company to opt out.
Your accountant or bookkeeper can use your financial records to produce financial statements if required. These are formal reports which summarise the business’s income and expenditure and its assets and liabilities.