Overview
Accounting in the UK follows generally accepted accounting principles (GAAP) which are governed by various bodies including the Financial Reporting Council (FRC) and the International Financial Reporting Standards (IFRS) Foundation.
Companies House: UK companies must file their annual financial statements with Companies House. These statements are publicly available and provide insight into a company’s financial health.
Applicability
Large companies in the UK are generally required to prepare their financial statements in accordance with IFRS as adopted by the EU (if applicable) or with UK-adopted IFRS (UK IFRS). Large companies are defined by various thresholds, including turnover, balance sheet total, and number of employees.
- Listed Companies : Listed companies in the UK are generally required to comply with the reporting standards set by the Financial Conduct Authority (FCA) in addition to the accounting standards prescribed by the FRC.
- Public Sector Entities :Public sector entities, including government departments, local authorities, and public sector bodies, follow specific accounting standards outlined by the relevant regulatory bodies.
Benefits
- Legal Compliance : UK accounting practices ensure that businesses comply with legal requirements such as filing taxes, maintaining financial records, and adhering to regulatory standards set by authorities like HM Revenue & Customs (HMRC) and the Financial Reporting Council (FRC).
- Decision Making : Accurate financial information provided by UK accounting practices aids in informed decision-making by management regarding budgeting, investment, and strategic planning.
- Business Growth : Proper accounting enables businesses to track their financial performance, identify areas of improvement, and capitalize on opportunities for growth
List of Documents Required
| S.No. | Documents Required |
| 1 | Bank Statements |
| 2 | Invoices & Receipts |
| 3 | Payroll Records |
| 4 | Tax Documents |
Process
| Step:1 | Step:2 | Step:3 | Step:4 | 5 |
| Collection of Data for accounting purpose | Addition of transactions to Journal & Passing the entries of the same | Post of entries and Expense & Bill Booking | Preparation of Trial Balance | Preparation of Financial Statement |