Year End Accounts

Every business regardless of size will need to prepare Year End accounts in order to calculate the tax liability for the year.

The content and complexity of the accounts will depend on the size of the business and its legal status. Limited companies have to prepare accounts in accordance with the guidelines set out in the Companies Acts. Sole traders on the other hand will need much simpler accounts.

The Year End accounts however are also a very important business tool.

They are very useful for the following:

1. Obtaining loans and credit facilities
   Any potential lender will always want to see copies of your recent accounts.
2. Gaining contracts
   Potential customers may want to establish whether your business can handle the proposed contract. Your accounts will give them an indication of the financial stability of the your business.
3. Gauging the performance of the business
   By comparing Year End accounts with those of previous years and analysing them using tools such as ratio analysis you can establish whether the business is achieving the targets that you set. The analysis may also highlight areas of weakness in the business.
   
   Financial Ratios