What are final accounts?
Definition of final accounts
The term ‘final accounts’ is usually used to describe the accounts filed by limited companies and limited liability partnerships (LLPs) after the end of every accounting year. These are sometimes also called year-end or statutory accounts.
Limited companies and LLPs must submit their final accounts to HMRC and Companies House after the end of every accounting year.
Final accounts for limited companies
Final accounts for limited companies should include:
- a balance sheet showing the value of everything the company owns, owes and is owed on the last day of the accounting year
- on the HMRC submission only, a profit and loss account showing the company’s sales, running costs and the profit or loss it has made over the accounting year
- any required notes to the accounts
- a director’s report (unless the company is a micro-entity)
Depending on its size, the company may also be required to have its accounts audited and to include an auditor’s report. The balance sheet must also have the name of a director printed on it and must be signed by a director.
HMRC provides more information about preparing final accounts for a limited company on its website.
Final accounts for LLPs
Final accounts for LLPs should include:
- a profit and loss account (or income and expenditure account if the LLP is not trading for profit)
- a balance sheet (signed by a member on behalf of the board and showing the printed name of that member)
- any relevant notes to the accounts
- group accounts (if appropriate)
Unless the LLP is exempt from audit, LLP accounts must generally be accompanied by an auditor’s report that states the name of the auditor and is signed and dated by them.
HMRC provides more information about preparing final accounts for an LLP on its website.
End-of-year filing with FreeAgent
FreeAgent’s end-of-year filing functionality helps limited companies file Final Accounts (FRS 105 micro-entity reports) directly to Companies House and Corporation Tax (CT600) returns with supporting accounts and computations directly to HMRC.
Disclaimer: The content included in this glossary is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this glossary. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.