Financial Accounts – What are they and how can we help?

There are two main forms of accounting information:

1. Financial Accounts, and
2. Management Accounts

Financial Accounts describe the performance of your business and have to be filed at Companies House. Financial accounts are a historical record of your business' performance over a past period - usually one year - for the benefit of external users such as shareholders, employees, suppliers, bankers and authorities.

Financial Accounts normally include the following elements.

1. Profit and loss account: This measures your business' performance over a given period of time, usually one year.
2. Cashflow statement: This shows how your business has generated and disposed of cash and liquid funds during the period under review.
3. Statement of recognised gains and losses: This records all gains and losses since the previous set of accounts.
4. Unincorporated businesses: Unincorporated businesses such as sole traders and partnerships are required by HM Revenue & Customs (HMRC) to maintain proper books and records to support annual income tax returns.

Management accounts are aimed at helping you to plan your business and make decisions about key areas such as sales, margins and stock.

B B Whitehouse Group, with experience dating back to 1910, are a full-service Accountancy firm, offering all levels of Financial and Management Accounting services.