Final accounts is done at the end of the year to find whether the company status is in profit or loss..... There will be a performer most of the company follows : First they prepare trading and profit and loss accounts and then if need ledgers and individual accounts, which shows the monetary transactions of company and then the last step will be preparation of balance sheet. Balance sheet is the table which shows the company status whether the company earned profit or loss and where the company's money is been invested and all the monetary transactions.
Final accounts refers to the position of a company at the end of its accounting period. A company can finalise its accounts based on its own timelines, but it is usually a year. At the end of the accounting period, the company prepares final accounts and looks at its position and knows whether it has made a profit or a loss.
The final account prepared at the end of financial yr of the company.sothat the company check what profit is earned by company.and also checked company ios going to profit or loss.
Final means at the end. Final accounts are prepared at the end of the accounting year and are made up of the Income Statement for the whole year, that is how the company has earned sufficient revenue to cover its expenses, interest and tax and to realise a profit for its owners: And a Statement of Financial Position (Balance Sheet) showing the Assets and Liabilities on the last day of the accounting year. A Company's Annual Report must also contain a Cash Flow Statement, A Directors Report, an Auditor's Report and some explanatory notes regarding the policies, concepts and conventions applied in preparing those accounts.
