Financial and management accounts

Limited companies are obliged by law to prepare a set of financial accounts each year and to file a copy with Companies House:

• private companies must file accounts within 21 months of the business' formation, and within nine months of the end of each financial year thereafter
• public companies must file accounts within 18 months of the business' formation, and within six months of the end of each financial year thereafter

Read Companies House guidance on preparing and filing accounts.

There are statutory penalties for late or incorrect filing, for which the directors are liable. 

For more information, see Companies House annual returns and accounts.

Small companies

For micro-entity accounts, a company must meet at least two of the following criteria:

• turnover is no more than £1 million
• balance sheet total is no more than £500,000
• average number of employees is no more than ten

A micro-entity must prepare accounts that contain:

• a balance sheet that complies with one of the specified formats given in the relevant regulations, along with any footnotes
• a profit and loss account that complies with the specified format given in the relevant regulations
• an auditors’ report (unless the company is claiming exemption from audit as a small company) 
• any notes to the accounts

Small companies must meet at least two of the following criteria:

• turnover is no more than £15 million
• balance sheet total is no more than £7.5 million
• average number of employees is no more than 50

Small company accounts prepared for members usually include:

• a profit and loss account
• a balance sheet, signed by a director on behalf of the board and the printed name of that director
• notes to the accounts
• group accounts (if a small parent company chooses to prepare them)

Small company accounts should also be accompanied by:

• a directors’ report that shows the signature of a secretary or director and their printed name
• an auditors report that includes the printed name of the registered auditor (unless the company qualifies for exemption from audit)

Medium-sized companies

A medium-sized company must meet at least two of the following criteria:

• annual turnover must not exceed £54 million 
• the balance sheet total must not exceed £27 million 
• the average number of employees must not exceed 250

Medium-sized accounts must include:

• a profit and loss account
• a balance sheet, showing the printed name and signature of a director
• notes to the accounts
• group accounts (if appropriate)

The accounts should be accompanied by:

• a directors’ report, showing the printed name of the approving secretary or director
• a strategic report
• an auditor’s report that includes the name of the registered auditor (unless the company is exempt from audit)

A medium-sized company must deliver all of the component parts of their accounts to Companies House.