Accounting Reference Dates Explained
Often abbreviated as ‘ARD’, accounting reference dates are the ending of the financial year for either a limited company or a limited liability partnership (LLP). When the incorporation of the company took place is what determines this particular date.
The financial years are figured out by reference to a period of accounting reference, which usually is 12 months. The ARD is given by Companies House to each company and/or LLPs, and is the date that the yearly accounts need to be made up to.
When a company is incorporated, the legislation will place the initial accounting reference date to be the final day of the month where the company’s or LLP’s anniversary lay. Consequent ARD’s will fall on the equivalent day each year, except if they get changed.
Here is an example: A company which gets incorporated on the 1st November 2014 has its first ARD on the 30th November 2015. This means it will be come on the same day each year except if the directors decide to extend or cut the financial year.
The annual accounts of both LLP’s and Private limited companies can be filed with Companies House for up to nine months from the ARD. There are lots of companies and LLPs that meet the criteria of being ‘small’. This means that they only need to arrange simplified accounts for Companies House. However, all companies, no matter how big or small must file their full annual accounts with HMRC.
Companies have got to supply full accounts for members and whoever else is permitted to be present at general meetings. LLPs must give full accounts for every partner and holder of debentures.
If you need advice or help with your business and its accounts, please contact The Cheap Accountant today. Our expert team are here on hand to help guide and advise you on the best possible route for your business.