Statutory accounts should typically used to Check legal expenses For a limited company in the UK.

1. Everything you want to know about
Statutory Accounts
Understanding more about your statutory accounts can be a bit challenging,
especially if you don’t have a financial background. It is important to
understand the basics of company accounts, no matter if you are an
experienced business owner or a new entrepreneur settling down in the UK.
Statutory accounts are like the crux, depicting how well your business is
performing at that stage and at that time.
Here in this post, the focus is to help you comprehend and get clarity of the
financials in your business. Do you know what is meant by company
statutory accounts? They summarize the organization’s financial activity
over the fiscal year or period of 12 months. Every year, the reports are
prepared for limited company accounts information and submitted at
Companies House and HM Revenue & Customs.
The free statutory accounts information comprises of the following:

2. • Balance Sheet– This financial statement provides an insight into your
company’s liabilities, assets, and the shareholder’s equity at a time. It
represents the financial health of the company at the time when
accounts were created and also helps in comparing what is owned versus
owed.
• Assets– It is something that is either owned by the company or you can
get advantage from. It can be a fixed asset or a current asset.
• Liabilities– It is more of an obligation, usually a debt that needs to be
repaid. It can be a current liability or a long-term liability.
• Profit and Loss Statement– This statement is not the same as of the
balance sheet. It explains about the company’s performance over the
period. You can see the total expenses and the total revenue of the
business in the statement throughout the financial year.
• Cash Flow Statement– The purpose of this statement is to detail the
company’s cash in and cash out movements over the fiscal year. Cash
flow is the money amount that comes in and goes out during a financial
year. The statement generally categorizes into three sections involving
operating activities, financing activities, and investing activities. Aside
from these, there are other financial terms as well to comprehend.
• Liquidity ratio – It enables to determine the company’s short-term
viability and is calculated as per the following:
• Liquidity Ratio = Current Assets/ Current Liabilities
If the ratio<1, it can be bad. How to evaluate the value of your business? Here
NAV (Net Asset Value) helps and is the right answer. It is calculated as follows:
• NAV= (Value of Assets) – (Value of Liabilities)/Total Share Liabilities

3. The NAV is expressed most of the time as the NAV per share. It is estimated as
by taking NAV and then dividing it by the total number of shares in issue. If the
NAV is higher than the share price, it might not be good and if it is less, it
indicates that the market is expecting the company to make profits in the
future.
The other key financials to understand include turnover, taxation, cost of sales,
salaries, dividends, capital reserves and depreciation etc. It is a mandate to file
at Companies House accounts information, and before you start, make sure to
get your accounts approved by the company directors and then file them. At
the end of the financial year, your private limited company must prepare to file
a company tax return and statutory company accounts information with
Companies House and HMRC.
At the end of the day, we all want our businesses to thrive and flourish. For
business owners, entrepreneurs and investors, it means that having clarity of
the enterprise through company accounts. DataGardener is an advanced
business listing platform helping professionals and business owners to look into
the financials and company accounts data of organisations operating across
different verticals. Feel free to apply the respective filter, be it industry type,
financials, accounts category or anything else. And the platform is helping you
in accessing information related to the following:
• Statutory Accounts – It tells about the company’s turnover, total
assets, total liabilities, and net worth through a graphical representation
over the last 2-3 years.
• Ratios – It helps in getting an understanding of the company’s total debt
ratio, current ratio, equity ratio and creditor days over the years.
• Profit and Loss Statement – It tells about the respective profit or loss
over the 12-month time, depending on factors like turnover, depreciation
or audit fees, etc.
• Balance Sheet – It tells about the assets and liabilities in detail.
• Capital and Reserves – It tells about the shareholder’s equity, share
capital and more.
• Cash flow statement – It describes the cash movement over the year.

4. • Miscellaneous and other financial items – It tells about the net worth of
the company, net assets, capital employed and so forth.
The statements can be downloaded for reference if required. Feel free to
connect with the team for more details. The company accounts information can
be rewarding in the long run, and in connecting with the right businesses to
expand and grow.