Accounting records are distinct from statutory accounts filed to Companies House at the end of each accounting period. The statutory accounts have to be published and sent to shareholders.
The Act states that the accounting records must be sufficient to show and explain the company’s transactions and be able, at any time, to show the financial position of the company with reasonable accuracy. The records should contain details of sales and expenses together with a record of the assets and liabilities of the company. These records must have sufficient information to compile the profit and loss account and the balance sheet that comply with the Companies Act.
Officers should be able to see the accounting records at any time. Shareholders do not have a right to see the accounting records, only the final accounts. Accounting records must be kept for three years by private companies and six years by public companies.
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