Accounts and Tax return? What exactly are they?

[MJA]

Hi everyone, A complete beginner here with his first ltd company. No clue what's going on with my accounts as my accountant handles everything but I'd like to get to know how my business is run. So what exactly are accounts and tax return? How are they done? What's the process?

 

[MyAccountantOnline]

Hi everyone, A complete beginner here with his first ltd company. No clue what's going on with my accounts as my accountant handles everything but I'd like to get to know how my business is run. So what exactly are accounts and tax return? How are they done? What's the process?

Accounts are broadly statements which show how much profit a business has made in any given period, typically a year, and what it owns and owes at the end of that period.

Accounts are prepared using details of the business income and expenses and information supplied by the owner of the business; they can be prepared from bank statements and details kept by the business owner including Excel sheets or from accounting records maintained by the business owner using bookkeeping software or an online system.

Tax returns are annual forms which must be sent to HM Revenue & Customs which show an individuals or company income and profits, the allowances which they can claim (which reduce the tax payable) and the tax payable for a tax year.

All accountants who prepare accounts and tax returns will work a little differently some more traditional firms may ask you to deliver records to their office, some may visit you to collect information and discuss it with you, some will be happy for information to be sent online, others will share information from online accounting systems, it varies hugely depending on how the firm works. You should choose one that works in the way you want to work.