Newly Incorporated?
hit the ground running.
Filing deadlines might feel an age away right now… but failing to act early could cost you
When do I need to file my first
set of accounts?
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At a new Director’s conference in May, it was surprising to see how many people had attended, keen to understand when they needed to concern themselves with the financial compliance side of their business. A key question of many was “when to I need to file my accounts?”.
Many were pleasantly surprised to learn that their newly incorporated businesses, wouldn’t need to file their first set of accounts for the best part of 2 years. Unfortunately, in practice, too often do we see businesses scramble to file their accounts and corporation tax on time.
What must I do following incorporation?
Whilst newly incorporated businesses will not need to file their accounts until 9 months and 1 day after their first year of trading (which is typically 12 months following the end of the month of their incorporation), the need to collect data, record transactions and keep records (in a manner suitable for accounts preparation) starts from day 1.
Common mistakes
A common issue with new companies, is a lack of record keeping in the early stages of the business, but business owners do not realise just how costly this mistake can be for their business. The cost of inadequate record keeping can include:
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Higher cost of preparing accounts - if your books and records are inadequate or inaccurate, it will take your accountant more time to prepare your accounts. Most high-street accountants will charge hourly rates, so this will add up to a higher accountancy bill.
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Catch-up time costs - failure to keep adequate and accurate accounting records will result in you spending significant time catching up, often building your books from scratch.
Get in touch for advice on getting started