Many business owners assume that if their Xero bookkeeping is up to date, their year-end accounts are ready to go. In reality, bookkeeping and statutory accounts are two very different things.

In this video, we explain the difference between bookkeeping and statutory accounts, why both are essential, and what happens after your bookkeeping is complete.

What is Bookkeeping?

Bookkeeping is the day-to-day recording of your business’s financial activity. This includes:

• Recording invoices and expenses
• Reconciling bank accounts
• Logging transactions
• Recording NHS statements (where applicable)
• Keeping your financial records accurate and up to date

Good bookkeeping provides the foundation for accurate financial reporting, but it isn’t the same as preparing your statutory accounts.

What are Statutory Accounts?

Statutory accounts are the formal financial statements your business is legally required to prepare each year.

Once your bookkeeping is complete, your accountant will:

• Review your financial records
• Apply UK accounting standards
• Make any necessary year-end adjustments
• Prepare your Profit & Loss account
• Produce your Balance Sheet
• Complete your Corporation Tax or Self Assessment tax return (where applicable)
• Carry out a senior review before everything is approved and submitted

This process ensures your accounts are accurate, compliant, and tax-efficient.

How Hive Helps

At Hive, we believe business owners should stay in control of their day-to-day bookkeeping while having experienced accountants manage the complex compliance work.

We support you with:

• Statutory accounts
• Tax returns
• Tax planning
• Xero support
• Ongoing advice whenever you need it

This allows you to focus on running your business while we take care of the technical accounting requirements.

If you’d like help with your bookkeeping, statutory accounts, or tax planning, get in touch.