Profit and loss preparation for Companies House
Clean up income, direct costs, overheads and exceptional items before profit and loss figures are delivered to Companies House.
Companies House filing is becoming more software-led, and accounts preparation needs to be clean before the filing window opens. A tidy profit and loss account starts with month-end habits, not with the annual accounts template. This guide covers profit and loss preparation for UK companies that want fewer surprises at approval and submission.
For wider context, use Year-end and annual accounts . If the topic affects a filing deadline, software choice or tax treatment, confirm the live position before acting. The workflow below is designed to keep the evidence in one place so the owner, bookkeeper and accountant can all review the same record.
Official point to verify
Companies House announced that from April 2028 all companies will need to file accounts through commercial software, and that small companies and micro-entities will file profit and loss accounts with an opt out from publication. Check the current wording in Companies House April 2028 accounts filing announcement before making a binding filing, software or tax decision.
What to control
| Area | Control | Why it matters |
|---|---|---|
| Income | Separate sales streams and unusual income | Presentation depends on classification |
| Direct costs | Keep cost of sales apart from overheads | Margins should make sense |
| Director costs | Review salary, dividends and benefits separately | Owner transactions are often misposted |
| Narrative | Prepare explanations for unusual movements | Directors and accountants need context |
Review routine
Treat the accounts file as a controlled data pack. Reconcile the trial balance, agree disclosures, confirm director approval, keep filing evidence and make sure the same figures can support HMRC, Companies House, shareholders and the accountant.
A useful review note should answer three questions: what source evidence was used, what judgement was applied, and who approved the treatment. Keep that note beside the transaction or period report rather than in a separate inbox.
Common mistakes
- Leaving all income in one sales account
- Posting director drawings as wages or expenses
- Explaining unusual P&L movements only after filing
The best prevention is a short, repeated checklist. If a control is too complicated to run every month or quarter, it will probably fail when the deadline is close.
How ReAI helps
ReAI supports the handover from bookkeeping to accounts production by keeping reconciliations, journals and review evidence together. That reduces the need to rebuild annual accounts from disconnected exports. For hands-on help with setup, see Accounting Assistance for Small Businesses .
Summary
Treat Profit and loss preparation for Companies House as a recurring accounting control, not a one-off admin task. Put the source data, review owner, exception list and submission evidence in the same system before the deadline arrives. That makes compliance work easier to check and much less dependent on memory.