Accounts can be simple to prepare. They tell the story of the life of the company. They are also used to complete the tax returns of the company.

Accounts are standard legal documents that follow strict format rules. They can be found in the Companies Act 1985 and accounting standards published by the International Accounting Standards Board and the UK accounting standards board.

It is wise to attempt preparing your own accounts before taking them to your accountant to be checked for errors.  Accountants are not held responsible for errors in accounts and tax returns. That responsibility lies with directors and individuals. Be aware that if accountants find evidence of fraud or money laundering, they will file secret reports to SOCA, and intelligence database used for investigations and prosecution. Unfortunately they are bound by law to do so, and are not permitted to tell their clients about it.

Preparation is a step by step approach. The final product must produce a true and fair view of the results (profit or loss) made by the business during an accounting period, and the position (of net assets on the balance sheet) at the end of the accounting period.

Use this section to help you get started.