When you engage in company formation, you are taking on a responsibility to fulfil certain legal requirements. This means that you have to ensure you are organised. Of course, for some people, this proves impossible and they are constantly in a state of disorder and confusion. For example, after you have gone through company registration, you will need to make sure you file your financial statements on an annual basis.
The information must include a profit and loss account, a balance sheet that has been signed by the director and a director’s report, which has also been signed. If you fail to adhere to this rule each year after your company formation, you will be subject to penalties. However, it is important to note that if your business is classed as a small company, you may be able to file abbreviated accounts only.
In order to ensure you are able to perform this task, it is vital that you remain organised throughout the year and have reminders that are brought to your attention when it comes time to submit the information. As long as you are clear in your records and remain on top of your business and its dealings, you should have no problem in doing this successfully.
But a surprising number of small to medium-sized enterprises fail to achieve this level of order and many are behind when it comes to their financial statements. Before you go through company registration, you should consider whether or not you are cut out for this aspect of business.
