The starting place for any business to understand how well it is doing is to prepare a profit and loss account. To truly understand a business a balance sheet should also be prepared and this has the added benefit of giving you the reassurance that your profit and loss account is correct. We are Cambridge accountants who specialise in financial accounting and management accounting to help you prepare and deliver your annual accounts.
A set of accounts or at minimum a profit and loss account is also the first step towards calculating any taxes due. Full Spectrum accountancy services can help you prepare a set of annual accounts in a time and cost conscious way. In some cases it can also be worthwhile or mandatory to prepare a full set of accounts for other reasons. Again, in each case, we offer our advice on what is best.
We can prepare annual accounts for:
- Partnerships and Limited Liability Partnerships
- Sole Traders
- Trusts and Estates
If you would like to discuss the items listed above, or any of the costs associated with them, please do not hesitate to contact us. We can also give you the help you need in order to minimise the accountancy services cost on an ongoing basis.
Financial accounts and tax returns are reactive – you do them because you have to and normally well after the time frame in which they would be useful. However, to run a business well you need to proactively prepare management accounts.
Management accounting enables you to see the financial position of your business well in advance of the annual statements that are completed after the year end. You can then assess whether or not you are charging enough for your product or services. They also identify which of your costs or expenses are out of control or reducing your profit. In such cases, action must be taken immediately, not six months after your year end.
Management accounting can also be very important in indicating how much you can afford to take out of the business. An important example here would be companies who pay dividends from post tax profits. Dividends paid from insufficient profits are repayable and illegal in company law, which adds further cost to the preparation of your annual accounts and tax compliance activities.
There is no question of the benefits, but the expense can be a concern. Full Spectrum are an accountancy firm offering cost effective financial accounting and management accounting solutions for you. Just contact us for more information.