Why it matters
They draw on the bookkeeping and year-end adjustments, including relevant accruals, assets, stock, liabilities and tax. A limited company has its own preparation and filing duties, while a sole trader’s accounts support a different reporting process. The records required depend on the structure and activity. Agree the timetable and the information needed before the deadline approaches.
A practical example
A company closes its year with bank statements, customer and supplier balances, payroll reports, loan records and stock information. Its accountant uses those records and supporting explanations to prepare the accounts and consider the associated tax work. Missing balance explanations can delay completion even when all invoices have been uploaded.
A common misunderstanding
Annual accounts, a Company Tax Return and the tax payment are not the same task. They can have different deadlines. Accounts also become more useful when directors review the results and cash implications rather than treating the exercise only as a filing obligation.
Sources & further reading
General information for UK readers, updated 3 November 2026. Examples are illustrative. Tax treatment depends on the facts and current rules; seek advice before making a decision.