How to Read Companies House Accounts

Companies House provides free access to the financial records of every limited company in the UK. Whether you are a supplier checking a potential client, an investor researching a business, or a director reviewing your competitors, knowing how to read company accounts can give you a valuable insight into the financial health and performance of a business.

For limited companies, understanding what your own Companies House accounts say about your business is just as important as reviewing someone else’s. Whether you are preparing for investment, applying for a loan or simply want to present a strong financial position, the figures you submit need to be accurate, compliant and easy to interpret. Our limited company accountants specialise in preparing clear and reliable financial statements that not only meet legal requirements but also reflect the true health of your business. We help you understand what those numbers mean, how they are viewed externally, and how to improve them year on year.

In this article, we explain what information is included in Companies House accounts, how to interpret the key figures, and what to look out for when assessing a company’s financial strength.

Where to Find Company Accounts

You can find company accounts by searching the business name or company number on the Companies House register. Once on the company profile, you can view and download copies of the filed annual accounts, confirmation statements and other statutory documents.

Small companies may only file abbreviated accounts, while larger companies must submit full accounts including a profit and loss statement. The type of accounts you see depends on the company’s size and filing requirements.

What Do Companies House Accounts Include?

Most company accounts filed with Companies House will include the following:

• Balance sheet

• Notes to the accounts

• Director’s report (for larger companies)

• Auditor’s report (if applicable)

• Profit and loss statement (for medium and large companies)

Smaller companies often use the micro-entity or small company regime which allows them to file minimal information, typically just a balance sheet with limited notes.

How to Read the Balance Sheet

The balance sheet is the most common document in Companies House accounts. It shows the company’s assets, liabilities and equity at a specific point in time.

Key terms to understand:

• Fixed assets: Long-term items such as property, equipment or vehicles

• Current assets: Short-term assets like cash, debtors and stock

• Creditors: Amounts the company owes, usually split into due within one year and due after one year

• Net assets: What is left when you subtract total liabilities from total assets

• Capital and reserves: The equity section showing retained profits and shareholder funds

By comparing two years of balance sheets side by side, you can spot trends such as increasing debt, falling cash, or growing retained earnings.

What Does “Debtors” Mean?

The debtors figure shows how much money is owed to the company. This is typically from customers who have been invoiced but have not yet paid. A high debtor figure might suggest that the business offers credit terms, but if it is too high compared to turnover, it could signal slow payments or weak cash collection.

What to Look For in Company Accounts

When reviewing company accounts on Companies House, focus on:

• Net assets: Positive net assets usually indicate financial health

• Cash at bank: A strong cash balance supports stability and growth

• Creditors: Rising short-term creditors may suggest cash flow pressure

• Shareholder funds: Growth over time shows profitability

• Changes year-on-year: Compare figures across different years to identify positive or negative trends

For small companies, remember that limited information may restrict how much insight you can gain, but even basic balance sheet data can be revealing.

Real-World Example

Imagine a company files micro-entity accounts showing:

• Fixed assets: £2,000

• Current assets (including cash): £15,000

• Creditors due within one year: £18,000

• Net assets: -£1,000

This tells you the company owes more than it owns, suggesting it may be in a financially weak position. Although micro-entity accounts do not show profits or turnover, a negative net asset position should prompt further investigation.

Limitations of Companies House Accounts

While Companies House accounts are a useful tool, they have some limitations:

• Information is historic, often filed up to nine months after the year-end

• Small and micro companies can file minimal data

• There is no real-time insight into current trading performance

Use the data as a starting point, but consider combining it with credit checks, customer reviews or direct communication with the business for a full picture.

Final Thoughts

Reading Companies House accounts is a valuable skill for anyone involved in business. Whether you are analysing a competitor, considering a new supplier or keeping an eye on your own company’s public profile, knowing what the figures mean can help you make smarter decisions.

If you need help interpreting a specific set of accounts or want expert advice on improving your own company’s filings, an experienced accountant can guide you through every detail.

If you run a smaller company or operate as a sole director, reviewing company accounts might feel more like a formality than a strategic tool. But even micro-entity balance sheets can reveal a lot about your business’s performance and stability. Our small company accountant service is designed for small business owners who want more than just compliance. We explain what the accounts show, help you track financial progress, and offer practical advice to strengthen your position before each year-end. Whether you are filing your first set of accounts or trying to make sense of what has already been submitted, we are here to guide you.

Unsure what to file, when to file it or how to stay compliant? Our Companies House Help hub walks you through it all.

You may also be interested in reading what does creditors mean on Companies House and what does debtors mean on Companies House