Sole traders and partnerships are not required by law to have annual accounts or to file accounts for inspection. These are formal reports which summarise the business’s income and expenditure and its assets and liabilities. However, in order to complete your annual self assessment tax returns, you will need this information.
End of year financial statements (your accounts) are useful for a whole host of reasons, not just to enable the completion of your tax return. One of the main reasons for running your own business is to make money – your accounts can help you make more money! Your end of year accounts will show you how much money came in (sales) and not just how much went out (expenditure), but where it went. There may well be savings you can make to reduce your expenditure which will in turn provide you with a bigger profit next period. As your main proof of income, your end of year accounts will be required for any finance you may apply for, such as a mortgage.
I can take either the records I keep for you or your own records and produce your end of year financial statements (accounts). These will be clear, straight forward and give you a clear picture of your business’ performance for that period, enabling you to plan for the future.