Accounting information relates to the financial or economic activities of a business or organization. It needs to be identified and measured by way of a “set of accounts”.
There are two broad types of accounting information:
- Financial Accounts- which are geared toward external users
- Management Accounts- which are aimed more at internal users.
The director of a company has responsibilities for the accurate maintenance of the company’s accounts. Management accounts are key in making business decisions from day to day however; there is a legal obligation under the Companies act to produce a set of Year-End Accounts for external scrutiny. These figures are also submitted to HMRC for assessment of your tax position.
If, for whatever reason, you decide to make your company dormant or wish to cease trading there are defined procedures you should follow to produce Dormant or Cessation accounts.