Management accounting & Financial accounting

Financial accounts are a legal  requirement for all Limited companies in the UK.

Here at M Webb Accounting, we can help with the preparation and submission of these accounts, so you can focus on running your business.

Not only are financial accounts a legal requirement, but can be beneficial in helping business owners assess and improve their current business performance, and highlight any possible risks.

The 3 key financial reports are:

• Profit & Loss - This report reviews the costs, turnover and other expenses your business has experienced. Further time can be spent analysing these areas so that business owners can see how and where their money is being spent, and the level of these expenses in relation to turnover.
• Balance Sheet - A summary of everything a business owes and owns, and its current equity value.
• Cash flow statement - Cash flow statements can be useful for short term financial planning. And are also useful for analysing liquidity (where is your money coming from, and where is it going?) this can then be used to help control costs. 

For micro-entities (those limited companies with a turnover of less than £632,000) the statutory requirement for the annual accounts requires only the balance sheet. But it is always beneficial to make sure your profit and loss, and cash flows are also as complete and accurate as possible to allow you to make reliable management decisions.